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Buy to let property returns at 16%
15 February 2008
Buy-to-let owners recorded over 16% returns on investment for 2007 despite talk of a slowdown in the British housing market.
New figures released by financial provider Birmingham Midshires, one of the UK's largest buy-to-let mortgage lenders, shows that in the year to December 2007 total returns were16.3 per cent, up 2.8 per cent on the previous year.
Contributing to the increase was a strong rental yield of 5.4 per cent with the average rent in the UK rising from £698 per month in 2007 from £617 in 2006.
Sainsbury Finance representative Steven Johnson said that the evidence of growth in the buy-to-let sector has contributed to its popularity.
"The buy-to-let market has grown substantially in recent years. People have invested a huge amount of money into this sector and as a result of rising house prices many have seen the value of this investment grow substantially," he said.
Recent cuts to base interest rates look certain to encourage further investment in buy-to-let properties experts say. 
