Research from Paragon Mortgages has shown that landlords had returns of more than 30% in 2004. On an average property, bought for £123,372 twelve months previously, in December 2003, landlords annual returns totalled £38,560 compared to a return of £22,137 or 20% in 2003 for properties bought in 2002.
Our view:
In a rising interest rate market, property becomes even more difficult to buy if you are trying to get on the ladder. It is at these times that renting again becomes attractive. Thinking of buying? Beware the hidden taxes - contact us fo advice first.