Property investors made an average return of 31% in 2004, according to a buy-to-let index released by Paragon Mortgages.
The report reveals that landlords enjoyed a return of £38,560 on an average property bought one year ago for £123,372. £29,462 was made up of capital appreciation and £9,098 rental income. This compares with total annual returns of 20% or £22,137 in December 2003.
John Heron, managing director of Paragon Mortgages, comments: "Landlords had a very good year in 2004 with their overall returns outstripping most other forms of investment. The average total return is over 31%, while in some regions it is significantly higher: 57% in Wales, 51% in the North and 44% in Yorkshire and the East Midlands."