Hottest spots for buy-to-let revealed

Birmingham Midshires has celebrated the tenth anniversary of the buy-to-let mortgage by revealing the hotspots for property investment in the UK, stating that the area of Bath and south-east Avon offered the highest level of return in 2004-05.

An overall rate of 36.4 per cent, calculated through capital appreciation and rental yield, emerged here.

Kent was second in the list, with a rate of 34.4 per cent, followed by Worcester, which offered returns of 32.7 per cent.

Newport paid around 28.4 per cent back to buy-to-let investors who bought a property there, while a rate of 27.2 per cent was recorded in Torbay.

Tim Hague, director of mortgages at Birmingham Midshires, said: “The buy-to-let market has experienced consistent growth over the last ten years.

“More and more people now see letting property as an achievable investment and an important part of a balanced investment portfolio.”

The lender found that the buy-to-let market has increased by 300 per cent in terms of the number of mortgages taken out since January 2006. It is currently worth £84 billion.