Buy to Let is Quickly Becoming Top Choice for Investors

08 February 2012 Categories: News

It seems the buy to let property market is quickly becoming the top choice for many UK investors. Gone are the days when stocks, shares and bond options held the highest annual yields; today you’re virtually guaranteed a better return by investing in property.

According to research conducted by Knight Frank agents, the national average annual yield for buy to let landlords in 2011 was 5.4%. Compare this to the 2011 FTSE All-Share Index yield of just 3.8% and you can see why applications from first time buy to let investors are on the up. In fact the buy to let mortgage specialist, Paragon, announced that nearly one quarter of their buy to let mortgage loans went to first time applicants during the last quarter of 2011.

But the good news doesn’t stop there, and especially if you’re a landlord in London. The online property giant, FindaProperty, recently did their own bit of data collection and found that Greenwich offered annual yields of over 10% while parts of East London came a close second with yields of 9.2%.

And to cap it all there are now over 20 buy to let mortgage products on the open market with 80% LTVs. The buy to let market is showing great on-going potential and it seems that UK investors are finally starting to wake up to the fact