Buy-to-let returns reach 14-month high
Landlord returns reached a 14-month high of 12% in the year to January 2016, the latest Buy-to-Let Index from Your Move and Reeds Rains has revealed.
Landlords typically made £21,988 over the period.
Adrian Gill, director of estate agents Reeds Rains and Your Move, said: “Buy-to-let returns are building and property prices are picking up – as the housing shortage across the UK intensifies.”
He added: “Stamp duty premiums on new buy-to-let purchases are the rhino in the room – everyone is talking about the 1 April deadline and the extra purchase costs are perceived by some commentators as potentially hazardous.
“But this is a little simplistic. Landlords are long-term investors and generally take good advice before making a new purchase, while the real changes will come when some landlords see gradual changes to their tax relief on mortgage interest. The rules around UK property are changing – but there is no bull in the buy-to-let china shop.”