Buy to let landlords have been making 13% returns in the last 12 months.
New Birmingham Midshires figures show that as rents and increasing house prices combine buy to let property investors are faring better than June 2006
Rents across the UK have gone up, boosting house prices everywhere.
The recent research highlights that the average price of a buy to let property went up 7.3% over the last 12 months to the value of £141,776.
Average rental yields were 5.5%, a little bit lower than last year, with the average rent going up 4.5% over the year, standing at £651 per month in June 2007.
The market is likely to slow over the next 12 months as increasing mortgage costs affect house price rises. However, there is no need to lose confidence in buy to let investments .
Although house price growth in the buy to let sector is likely to be more subdued in the near future, reflecting higher interest rates, further potential increases in rent ought to encourage long term investors.
There is also the potential for healthy long term capital appreciation in this sector, especially given that more households are forming each year






