Total Return on residential property is 8.9% year on year
• Buy-to-let portfolios up 2.9% in 3 months
• London buy-to-let returns 16.1% in 12 months compared to -7.3% for FTSE
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Total Returns in England and Wales to February 2016
• Monthly change + 0.02%
• Quarterly change + 2.88%
• Annual change +8.90%
Commenting on the figures, Rob Weaver, Property Partner’s Director of Property said:
“Despite a slight dip in total returns for UK residential property investors in February, bricks and mortar continue to outperform stocks and shares which are far more volatile.
“London is still proving a beacon of strong performance with buy-to-let returns making landlords a healthy 16.1% year-on-year, mainly due to average house prices marching ever upwards.
“But the regional divide is widening. Our research shows the North East to be out of kilter with the rest of the country, looking particularly weak and plunging into negative territory once again – the fifth time in 12 months.
“By contrast, the North West of England saw strong growth, posting the best monthly return of any region. However, the story ahead for traditional buy-to-let landlords, could make uncomfortable reading when mortgage interest tax relief is gradually withdrawn and interest rates finally increase.”
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Notes on Methodology
The Property Partner Residential Market Index provides a long term proxy for private rented sector investment
performance. Our methodology takes into account all the costs incurred through the management of rental property
– with deductions for operating costs, void periods, bad debt, maintenance and value enhancing capital improvement
work. Data sources include the Land Registry HPI, ONS Household Expenditure Survey 2004-2015 and the VOA
Private Rental Market Statistics quarterly report. The information in this document should not be construed as offering
investment or tax advice. Property Partner is the trading name of London House Exchange Limited, a company that is
authorised and regulated by the Financial Conduct Authority (No. 613499)