Total Return on residential property is 9.6% year on year
• Buy-to-let portfolios up 2.3% in 3 months
• London buy-to-let returns 16.5% in 12 months compared to -3.9% for FTSE
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Total Returns in England and Wales to March 2016
• Monthly change -0.31%
• Quarterly change +2.31%
• Annual change +9.57%
Commenting on the figures, Rob Weaver, Property Partner’s Director of Property said:
“Total returns for residential property crept up to 9.6% in the year to March, as investors rushed to beat April’s
stamp duty deadline.
“This was especially true of London, where annual returns were in double digits, reaching an eye-watering
16.5%. The East was strong too, and from first hand experience the Northern Powerhouse regeneration plan
is boosting investment activity in the North West and in particular Manchester.
“Monthly figures can be volatile, but what’s clear is that regional disparities in the housing market are
widening, with Yorkshire and Humberside and the North East regions looking fragile.
“Investors are understandably showing caution ahead of the EU referendum. But the fundamentals – high
employment, wage growth, cheap borrowing and the chronic shortage of supply – remain in place and are
positive.”
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Notes on Methodology
The Property Partner Residential Market Index provides a long term proxy for private rented sector investment
performance. Our methodology takes into account all the costs incurred through the management of rental property
– with deductions for operating costs, void periods, bad debt, maintenance and value enhancing capital improvement
work. Data sources include the Land Registry HPI, ONS Household Expenditure Survey 2004-2015 and the VOA
Private Rental Market Statistics quarterly report. The information in this document should not be construed as offering
investment or tax advice. Property Partner is the trading name of London House Exchange Limited, a company that is
authorised and regulated by the Financial Conduct Authority (No. 613499)