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BTL landlords grow portfolios

The average size of buy-to-let portfolios rose from 4.9 to 5.7 properties in the second quarter of 2005, says the Association of Residential Letting Agents.

Its quarterly survey, based on responses from 489 regulated agents and 322 investment landlords, finds that average annual rates of return have risen by 0.1 per cent to 11.28 per cent on cash purchases and by 0.25 per cent to 22.55 per cent on geared investments since the previous quarter.

Forty-seven per cent of residential landlords questioned by Arla say they look for both a rental income and capital appreciation from their properties while 44 per cent invest solely for capital apprciation and 7 per cent solely for rental income.

Eighty-two per cent of tenancies are arranged as assured shorthold tenancies. Other forms of tenancy reported include short-term lets, holiday lets and contracts with housing associations and other regulated social landlords.

The report shows average capital asset values of rented houses rose by 0.2 and 0.5 per cent respectively in central London and the South-east over the last three months while values in the rest of the UK are up by 2.3 per cent.

Chief executive Adrian Turner says: “One of the significant advantages of buy to let is the long-term approach of the 21st Century landlord. From the beginning, we knew that the concept of buy to let attracted the financially mature investor. Once again, this is being illustrated by the clear understanding shown of the long-term contra-cyclical nature of residential property investment.”


Public sector staff storm ahead

Public sector workers now out-earn their priv- ate sector counterparts by 17 per cent, as well as receiving typically better pension arrangements, according to research by the Chartered Institute of Personnel and Development.

Woolwich goes for minimum return

Woolwich Plan Managers has established the capital plus plan issue 8 a guaranteed equity bond which offers a minimum return of 22.5 per cent plus the original capital at the end of the term regardless of the performance of the FTSE 100 index.

‘Treating customers fairly could provide gift-wrapped claims’

The FSA’s treating customers fairly initiative could prompt the next wave of “gift-wrapped” complaints against IFAs, warns Aifa director general Chris Cummings. He says claims management groups could exploit TCF’s high-level principles and encourage customers to take complaints over fairness to the Financial Ombudsman Service. He says the vagueness of the TCF principles, which all […]

B&B offers new shared two-year fixed rate mortgage

Bradford & Bingley is offering borrowers an exclusive shared two-year fixed rate mortgage, funded by Alliance & Leicester. The product offers an initial rate of 4.28 per cent fixed until October 31, 2007. This reverts to base rate plus one – currently 5.75 per cent for the remaining term. With a 95 per cent maximum […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]


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