UK second most profitable country for BTL, says Assetz

The UK is the second most profitable country for buy-to-let investors, the latest figures from the Assetz property investment tracker show.

The tracker, which records the buying costs, rental yields and capital growth for 14 key investment destinations, shows Poland in first place with a total 165% return on cash investment.

It is followed by the UK with 63%, Bulgaria with 54% and France with 51%.

This latest research suggests that many investors will be keeping their money closer to home in 2007, benefiting from continued strong and sustainable housing market growth in the UK.

The six major UK house price indices show an average of 9.8% annualised growth for the 12 months to February 2007, primarily as a result of the continued imbalance between supply and demand.

The UK remains a low risk investment destination and despite recent interest rate rises, purchasing costs remain low.

Stuart Law, managing director of Assetz, says: “The growing demand for homes, driven by high immigration and the forthcoming expansion of the European Union to include such countries as Bulgaria, Poland and Romania, will continue to drive demand for the buy-to-let market over the next few years.

“As first-time buyers are increasingly priced out of the market demand for rental properties is likely to rise, providing a strong basis for buy-to-let investment.

“The overall shortage of homes is set to drive house prices in the UK up by between 8% and 10% in 2007 and 2008, encouraging investors to take a long-term view and benefit from strong capital gains despite historically low yields.”