Capitol buy-to-let professionals reap greatest rewards

Posted 2007-12-18

A survey of landlords by Alliance & Leicester Mortgages reveals professional buy-to-letters with properties in the capital area are landing the highest profits.

Rental yields in central London can be up to four times higher than rental properties in the south-east of England.

London will apparently remain the most popular property investment region in 2008; with Scotland expecting to generate a 5% increase in rental yields, and the north of England a 4% boost and also experiencing the most rapid expansion, according to the survey. Additionally, 71% of those questioned were ‘generally optimistic’ on the outlook of the coming year.

Alliance & Leicester stated that professional landlords with large portfolios were generally financially secure and able to save a portion of their profits from letting.

The analysis further revealed that nearly half the landlords owning twenty or more properties realized enough profits to supplement their savings, while a further 40% of landlords were managing such lucrative operations that they relied on their portfolios as their main revenue.

“It is encouraging that buy-to-let landlords indicate they are feeling buoyant about the outlook for 2008. Regardless of a tough financial year, it is clear the buy-to-let property market is still healthy for longstanding landlords, especially for those in the south-east of the country,” stated Jeremy Claridge, head of specialist mortgages at Alliance and Leicester.

Leave a Reply