2008 Looks Promising for Landlords

Posted 2007-12-18

Alliance & Leicester Mortgages released their findings from a new study of the buy-to-let market. Londoners will be quite happy to learn that the study expects London to be the most popular region for property investments in 2008; Scotland and the north of England, on the other hand, will see the most expansion.

Unfortunately, however, not all owners can jump for joy about the results; the ones who will benefit most from the property investment are professional landlords rather than individual home owners. Specifically, the survey found that Scotland would generate a 5% increase in rental yields in 2008 and the north of England would see a 4% increase.

Speaking of landlords, the Alliance & Leicester study also documented interesting statistics, including:

• Nearly 50% who owned twenty or more properties made enough to supplement their savings
• A full 40% were running such lucrative operations they relied on their portfolios as their main income

Wondering why you chose a career model other than becoming a landlord? I am too. Those landlords who invested in the capital region are garnering the highest rent checks; the survey showed rent prices in this region are up to four times higher than properties in the south-east of England.

Commenting upon the fact that 71% of landlords surveyed expressed optimism about the 2008 year, Jeremy Claridge, head of specialist mortgages at Alliance and Leicester, said that it was a good sign that even during a difficult financial year, the rental market remained healthy enough to support such optimism. He went on to state: “It is clear the buy-to-let property market is still healthy for long standing landlords, especially for those in the south-east of the country.”

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