LETTINGS NEWS: Landlords still receiving good returns from buy to let
A survey of buy to let across England and Wales has revealed that in the past year landlords have received an average return of over 12 per cent, showing that letting a property remains an attractive investment despite recent tax changes.
The results, revealed by two lettings organisations, show that when capital appreciation and rental income are combined, a typical landlord would have seen a return of £22,135 in the year to March 2016.
Of this, the average capital gain contributed £13,494 while rental income made up £8,641.
This is the equivalent of 12.2 per cent of the value of a typical buy to let property.
This is of course an average, and different areas will produce different figures: however, the survey’s result is the highest for two years and shows the strength of the sector because of growing demand for rental accommodation.