BTL ends year on a high

Landlords were enjoying a 7.6% annual return on their investments by the end of December, according to the latest Buy-to-Let Index from LSL Property Services. With the value of their properties rising by 3% over the year and rental income after void periods adding a further 4.6%, a typical landlord made a return of £12,740 in 2009. By contrast, in 2008, a typical landlord lost 8.8%, even after allowing for rental income, representing a total loss of £15,100. "It's now clear that the private-rented sector is recovering well from a period of instability," said Chris Norris, policy manager at the National Landlords Association. "What we need to see is the opening up of credit so that those landlords wishing to expand portfolios are able to do so."