With the south producing stellar returns, the midlands are broadly in line with the national average, while northern regions are lagging far behind. A landlord investing a year ago in London would have made an average 16% return, equivalent to over £33,000 on a typical property, while one in the north east would barely have broken even, scraping in just £1,700.
The total return from investing in buy-to-let over the last twelve months reached 10.6%, the highest level since LSL Property Services plc began compiling figures two years ago. This is despite a slight drop in house prices in February.
Given the slowdown in the pace of house price increases, a landlord investing today can expect to make an annual return of 8.5% over the next twelve months[i], with a little more than half of that return coming from income and the balance from capital appreciation. This is equivalent to £14,000 on a typical property.
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