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2009 brings profits back to letting landlords

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The re-emergence of the buy-to-let market has brought welcome profits back in to the hands of landlords struggling to recuperate the losses of last year, new figures have suggested.

LSL Property Services, owner of the UK’s largest letting agent network, including chains Your Move and Halifax, has found that as house prices begin to stabilise and tenants flood the market, landlords should expect a 4.1% annual return by the end of the year.

In 2009, a typical landlord lost just £600 on the value of their property, but earned £8000 in rent, meaning total average profit is £7,400. In 2008, landlords lost £15,100 on average due to plummeting house prices and cheaper rents.

“After a difficult year, the end of 2009 has seen buy-to-let return as a profitable investment,” commented David Brown, Commercial Director of LSL Property Services. “Returns have not only turned positive, they’ve hit an 18-month high.

“With property prices rising, landlords are making impressive capital gains as each month goes by.”

Next year, landlords should expect to make £8,000 in rental income and capital gains of around five per cent, meaning total return should reach £16,000, according to LSL.

“Buy-to-let is an essential part of our housing market. We need well capitalised, experienced, professional landlords. With returns rising, they can once again look forward to investing more in the sector to meet our housing needs,” added Mr Brown.

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Written by Andrew Hodges

December 31, 2009 at 4:46 pm

Posted in Comment, LinkedIn

Tagged with , ,

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