Buy-to-let property market strong on tenth anniversary

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Mortgage provider Birmingham Midshires has revealed the rental property market outperforms other types of investment after a decade of buy-to-let mortgages.

With savings receiving an average interest rate of 3.9 per cent and FTSE100 shareholders yielding 6.9 per cent, the current return of 11.25 per cent has investors turning to property as a long-term solution.

Rental earnings range from 4.7 per cent in the south-west to a high of 5.9 per cent in the north-west, which is the most financially rewarding region according to Birmingham Midshires. Remaining profit is made from capital appreciation, which in Central London has been 217 per cent over ten years of buy-to-let availability.

Director of mortgages, Tim Hague, said investors "plan to stay in the market for an average of 17 years and when you consider the potential returns from both the rental yields and capital appreciation, its easy to see why".

"More and more people now see letting property as an achievable investment and an important part of a balanced investment portfolio," he added.

To mark the tenth anniversary of buy-to-let, the Association of Residential Letting Agents is presenting prospects for the sector in a new report, Buy to Let - the Revolution Ten Years On.

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