Articles > Buy-to-Let Rental Income On The Increase

While there has been a great degree of coverage in the press as of late concerning recent uncertainty in the property market, there is one area that has outshone the others. 

As fewer people are buying residential property, rental income generated on Buy-to-Let properties is on the increase, as those who would normally have bought still need somewhere to live and are choosing to rent instead. This can make for an attractive investment for those looking to expand their property portfolio. 

According to Landlordzone.co.uk, the ARLA (Association of Residential Letting Agents) research into Quarter 1, 2008 indicates that ‘rents have risen by an average of 4% with rises of 2% for flats. The figures were increased substantially by the London effect — prices in Central London prime residences achieved 9% with 5% increases outside the South East.’

While rates have increased on most forms of mortgages, a 15% deposit will normally ensure that a competitive interest rate is achievable. Furthermore, interest expenses and other financing fees (arrangement fees etc) are tax deductible as business expenses, making it even more attractive for higher rate tax payers.