Good year for Buy To Lets

Buy to let investors had a good year in 2007 and according to Paragons buy to let index, returns driven by average residential investment property reached 21%.

The average landlord generated over £34,500 because of house prices, rental income and steady yields.

The average value of buy to let properties has risen 15.3% over the past year and yields were able to be retained at 6% as landlords increased rents in line with property values.

Rents and property values have grown over the past year and it is expected that rents will rise further as first time buyers are staying in rented properties for longer.