Investment Property News - Bueno Investments Limited

Buy-To-Let Landlords In NI Booming

Buy-to-let landlords in Northern Ireland were the most successful in the UK last year after making average returns of 44%, new research shows.

Birmingham Midshires said the boost was down to properties in the province increasing by 39% during 2007, beating the gains made in Greater London, which saw the second highest growth of 15.8%.

Across the UK investors made average returns of 16% over the 12 months as increases in property prices and rents aided cashflows.

The figure, which excludes fees and mortgage interest, is also up from returns of 13.5% recorded in 2006.

An average investment property in the UK now costs £154,795, while the North is still the cheapest place to rent at an average of just £494 a month - the only region in the UK where monthly rents are below £500.

Tim Hague, managing director of Birmingham Midshires Mortgages, said: "The fundamentals underpinning the buy-to-let sector are sound.

"They include strong demand from higher immigration levels and housing affordability concerns for first-time buyers.

"However, we expect house price growth to be more subdued in 2008, largely reflecting the impact of higher interest rates."

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