Buy to Let returns improve January 27th, 2008
The higher mortgage rates seen during 2007 made it increasingly difficult for would be house buyers to get on the property ladder. This has aided the buy to let landlords as more people look towards renting a property rather than buying.
Despite slowing capital gains, the average buy to let investment will have yielded a 21% return in 2007, thanks to rental increases of 19%, three times 2006 levels. Even with such increases, renting still proves to be cheaper than buying, with the average rent being only two-thirds of the mortgage costs on the same property.
