Welsh boom in buy to let
Investing in property to rent out is booming, and nowhere more so than in Wales.
Average returns generated by UK landlords have reached their highest level in five months, as both rents and property values continue to rise. Over the past quarter, rents are up 8.2% and house prices paid by landlords up 5.5%, according to mortgage lender Paragon.
But Wales stands out as the biggest buy to let hot spot. Rents are up by 33% over the past quarter and property prices by 18%. Rental yields are also following a positive trend, with Wales the only region of the country where yields exceed 7%.
John Heron, managing director of Paragon Mortgages, says: “The astute landlord who invested in buy to let in Wales this time last year will have achieved almost twice the national average total return. While the national picture remains strong, residential property investment looks particularly attractive in Wales. Trends in the local economy are very positive, creating new jobs and causing an influx of workers into the area, which in turn fuels tenant demand.”