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Paragon: Buy-to-let goes from strength to strength

26 October 2006
Buy-to-let mortgages remain a strong sector for investment in the UK economy on the back of strong returns across a range of portfolios.

According to research from Paragon Mortgages, the north of England had the highest return on investment for buy-to-let properties in the past 12 months.

The average purchase in this region was £88,005 in September 2005 and the ensuing year-long period saw properties gain £18,495 in value along with a mean rental yield of £5,711, equal to a total gross return of 27.5 per cent for the year.

"Investors are attracted by stable rental yields and good overall returns over the short to medium term," said Nigel Terrington, chief executive of the Paragon Group.

"The professional landlord bases his investment decisions not on short-term house price trends or fluctuations in borrowing costs, but rather on a long-term view of tenant demand based on demographic trends such as population growth, migration and longevity."

The national average for total investment returns on buy-to-let properties in the last 12 months is over ten per cent, making it a solid area for future growth and a lucrative economic sector.

To read more about buy-to-let mortgages, click here.

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