Landlords saw a 7.6% annual return on their investments by the end of December 2009, according to the latest index from LSL Property Services.
The value of their properties rose 3% in the year while rental income after void periods added a further 4.6%. In 2009, a typical landlord made a return of £12,740. This was a combination of capital gains of £4,831 on each property and £7,909 in rental income. By contrast, in 2008, a typical landlord would have lost 8.8% even after allowing for rental income. They lost £23,000 in capital as the property fell in value, and earned £7,900 in rent for the full year, leading to a total loss of £15,100. David Brown, commercial director of LSL Property Services, says: "Despite the worst rec...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes