Total Landlord Insurance: Landlords regaining confidence in buy-to-let property market

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Research finds rebound in yearly returns for landlords.

In contrast to last year’s performance, it’s positive to see that confidence is being restored. The market has made quite a dramatic recovery, and we’re eager to see what’s in store for 2014.

With landlords expecting annual returns next year to the tune of £16,000, the housing market appears to be growing at a much more stable rate.

According to an article published on landlordexpert.co.uk, in 2009 the average UK landlord reported yearly returns of 4.1 per cent; with a typical rental yield of 4.6 per cent offsetting decreasing house prices. In comparison to 2012, landlords lost approximately 8.8 per cent as capital values and rental revenue rapidly declined.

Yearly returns had fallen to -11.1 per cent in February, before the sector experienced a significant increase seven months in a row due to rising house prices. With the average rent falling to a low of £648 in February, it was only in November that the market picked up – receiving a boost that took it to £665.

A spokesperson for Total Landlord Insurance commented: “Investing in the property market is much like a waiting game - the results may not be instant, but they are certainly impactful. Thankfully in this case, landlords have been exceptionally fortunate – and after purchasing property last year, can look forward to profiting greatly from their investments.

“In contrast to last year’s performance, it’s positive to see that confidence is being restored. The market has made quite a dramatic recovery, and we’re eager to see what’s in store for 2014.”

Experts predict that the average landlord stands to earn around £8,000 in rental income next year, whilst capital gains are expected to take in total yearly returns to £16,000. A decrease in ‘reluctant landlords’ will see a huge boost in confidence amongst landlords, after making the transition into buy-to-let after failing to make a sale on their homes.

“The buy-to-let initiative is an integral part of the housing market, but in order to function properly we need well-experienced and highly reputable landlords,” added the spokesperson. “Thanks to returns rising, the landlord community can enjoy even more worthwhile investments.”

With confidence at an all-time high, it is hoped that investors will secure a number of properties – and add more interest within this market. For more information on buy-to-let, contact Total Landlord Insurance – and get a free tenant reference check when you buy a Total Landlord Insurance policy today.

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Mariel Norton
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