Paragon indicated that the average rent achieved by landlords in Wales reached £11,251, up from the December findings of £8,480.
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Investors who purchased a property one year ago generated an average total return of over 25 per cent on a property worth £133,297 in March 2006, the study suggested. The report also indicated a rise in the average buy-to-let property, up 17.5 per cent from the December findings of £134,727, to £158,239.
Commenting on the findings, John Heron, managing director of Paragon Mortgages, said: “The astute landlord who invested in buy-to-let in Wales this time last year will have achieved almost twice the national average total return.
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“Trends in the local economy are very positive, creating new jobs and causing an influx of workers into the area, which in turn fuels tenant demand.”
Paul Rockett, managing director of TBMC, admitted the regeneration of Cardiff and the surrounding arrears had helped landlords realise earning potential from their properties.
He explained: “Following the successful redevelopment of Cardiff, from the Bay area outwards, we’re now seeing regeneration spread to other towns in South Wales.”
He continued: “Many international companies have recently moved into the principality and this creates additional demand for rental properties.”
