Buy-to-let returns on the rise

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Buy-to-let returns on the rise

Last year saw a growth in profit for buy-to-let investors, who saw their returns rise to 16.3 per cent, up from 13.5 per cent in 2006.

Investors in Northern Ireland made the strongest gains in 2007 with total returns of 44.3 per cent, according to a review from Birmingham Midshires.

The average price of typical by-to-let property in the UK rose to £154,795, an increase of 10.9 per cent.

Meanwhile rental yield on those properties rose marginally to 5.4 per cent.

Tenants in Britain paid an average of £698 per month last year, an increase of 13.1 per cent on the previous year.

Steven Crawshaw, chief executive of specialist buy-to-let mortgage lender Bradford & Bingley, recently warned that the buy-to-let market was becoming "a rich mans game", the Telegraph reported.

He predicted that stricter lending criteria and the rising cost of taking out specialist mortgages would leave the market only accessible to "professional landlords and the wealthy", according to the paper.
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