Buy-to-let landlords experiencing 30% returns

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by Elaine Frei

A recent study from Alliance & Leicester Mortgages (A&L) shows that 25% of buy-to-let landlords who have sold property since 2005 have experienced returns of more than 30%.

In addition, the research also illustrates that first-time buyers are benefiting from these properties, with 42% of the buy-to-let homes being bought by people taking their first steps onto the property ladder.

Jeremy Claridge, head of specialist mortgages at A&L said that this study shows a positive view of the buy-to-let market with all but 2% of landlords achieving capital growth on their properties when sold in the last 2 years, primarily due to the double digit growth in property prices. Mr Claridge also said that landlords need to be cautious when planning for the future.

This upbeat picture may be true at present but recent figures have demonstrated that property prices are slowing and threatened by the serious prospect of deflation, therefore, landlords would need to plan carefully for all outcomes. The research by A&L also shows that 10% of landlords have sold property over the last 2 years.