But-to-let-thriving says report

4th October, 2005

Landlords who are investing in buy-to-let property are enjoying excellent returns says a new report.

Paragon says that the average property purchased in April has today risen in price by around 5.5 per cent.

Although the research points out that landlords invested slightly less money in buy-to-let last month, the incentive to do so is growing, as rental incomes rise and property appreciates in value.

When buying a new home, it is important to take out adequate home insurance, especially if considering buying to rent.

Buildings insurance will protect the value of an investment, while contents insurance (if the house is furnished) should replace items accidentally damaged.

For people looking to rent property, tenants insurance can be a wise move as this will provide additional cover to a landlord's policy.

'The summer is traditionally a somewhat quiet time in the housing market, but with renewed confidence, good tenant demand and the UK's long term structural shortage of decent accommodation, it's no surprise that investors continue to buy,' said John Heron, managing director Paragon Mortgages.

 

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