With a growing number of people taking an interest in the BTL market, BM Solutions’ BTL Hotspots has revealed Bath and South East Avon as the top areas for overall rate of return. Capital appreciation and rental yield of Bath and South East Avon reached 36.4 per cent, with Kent achieving results of 34.4 per cent.
According to the report, capital appreciation for investors looking at properties in central London were favourable, climbing 217 per cent in 10 years. While Manchester and the North West achieved results of annual average rental yields of 5.9 per cent, London reported annual average rental yields of 4.7 per cent.
Commenting on the findings, Tim Hague, director of mortgages at BM, said: “The BTL market has experienced consistent growth over the last 10 years. Research shows that BTL investors plan to stay in the market for an average of 17 years and when you consider the potential returns from both the rental yields and capital appreciation, it’s easy to see why. More and more people now see letting property as an achievable investment and an important part of a balanced investment portfolio.”
Justin Wiggins, IFA at Heliting Services Ltd, said: “There has definitely been an up turn in the BTL market and around 30 per cent of my business is now BTL. A lot of my business comes from existing landlords as rental yields continue to go up and there is less vacant property on the market, which has helped to boost prices.”
