Buy-to-let earnings grow in 2009, figures show

Landlords with property for rent in Basingstoke and elsewhere in the UK are likely to have benefited from an upturn in buy-to-let activity last year, figures show.

Owners of rental property enjoyed an average 7.6 per cent return on their investments in 2009, according to the latest Buy to Let Index from LSL Property Services.

This netted landlords an average return of £12,700, which is almost a complete reversal compared to the £15,000 losses in 2008.

A vast increase in income is largely due to the difference between increases in the value of properties, which rose by around three per cent, and rental income, which increased by 4.6 per cent.

David Brown, commercial director of LSL Property Services, said: "Despite the worst recession in living memory, and despite house prices continuing to fall for the first few months of 2009, investment returns in buy-to-let were very respectable.

"Brave landlords who added to their portfolios will be celebrating an excellent year."

However, landlords are becoming increasingly concerned about the volume of legislation they are required to comply with, according to the Residential Landlords Association (RLA).

RLA chairman Alan Ward said: "It's not just the volume of legislation but the way that it is applied."

Article Date: 21/01/2010