Total Return on residential property increases to 10% year on year

• Buy-to-let portfolios up 2.8% in January

• London buy-to-let returns 16.6% in 12 months compared to -4.6% for FTSE

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Total Returns in England and Wales to January 2016

• Monthly change +2.8%

• Quarterly change +4.0%

• Annual change +10.0%

Commenting on the figures, Rob Weaver, Property Partner’s Director of Property said:

“In contrast to the turmoil in global equity markets, total returns for UK property investors surged in January,
rising to 10% year-on-year.

“Investments in London residential property jumped 3% month-on-month, but the regional picture was
mixed. The North East fell 1.3% over the same period.

“The hope is that traditional buy-to-let investors currently scrambling to complete on new purchases before
the April stamp duty deadline, fully understand the impact of the tax changes coming down the line.

“Our research shows that the gradual withdrawal of mortgage interest tax relief will render many directly held investment properties around the UK unprofitable, all the more so if interest rates rise.”

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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)