Is the Buy-to-Let Industry on the Rise in the UK?
According to a recent study from the Association of Residential Letting Agents (ARLA), the fourth quarter of 2007 revealed favorable conditions for the buy to let industry.
More specifically, Scotland and the North West area in the United Kingdom offered especially pleasing returns on “buy to let” investments.
In fact, the website, LandlordExpert.com, offered the following information on this important buy to let business report from the ARLA:
The North West recorded an average percentage (per annum) of 11.03, while Scotland’s rose to 11.07 per cent. This was particularly significant when compared to figures from across the country, which averaged 10.81 per cent per annum.
Scotland and the North West also topped the poll for gross annual rental yields. While the national average stood at 4.81 per cent, Scotland ARLA reported a figure of 5.23 per cent and 5.29 per cent in the North West.
Of those polled in the ARLA survey, nine out of 10 said they had no intention of selling their properties over the next 17 years, a statement which reflected reports that UK buy to let investors were in it for the long haul.
This information does look good for the UK buy to let industry!
Paragon reveals promising buy-to-let statistics
The Telegraph also recently reported that rents are in fact the highest they have been in seven years - according to a Paragon report.
Specifically, rents rose 2.4 percent between February and March alone, and since last quarter, rents rose an impressive 5.2 percent. Further, yields - rent as a percentage of the value of a property - rose from 6.0 percent three months ago to 6.3 percent.
Real world example - Canterbury
One example of a locale that is currently getting interest from buy to let investors, developers and first time home buyers alike is the Canterbury area in the United Kingdom. Simon Backhouse, from Strutt & Parker - a property consulting firm - recently stated in the Times Online that two bedroom seafront flats are selling for £150,000… or as he says “for peanuts”. In turn, buy to let investors recognize this “deal” and are seriously investing in properties in the Canterbury district.
All in all then, it appears that there may be some good opportunities in the UK buy to let investment sector for business savvy individuals and developers alike.
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