Landlords seeing a return on their investments
Rents are often the main focus for landlords on a day-to-day or month-by-month basis, but one of the big benefits of buy-to-let property as a form of investment is that owners can also access a lump sum by selling.
Although the last few years have been tough on property prices, it is possible to make significantly large amounts of money selling property at a higher price than you bought it for. Factoring in the rents that you receive from tenants while you own it and it's easy to see why so many people with the start-up capital want to become landlords.
Even if you're not planning on selling your real estate any time soon, it's always reassuring to know that it is rising in value – and that is exactly what new data from Rightmove.co.uk shows, with house prices increasing by 4.1 per cent during February, their largest monthly rise in ten years.
The biggest rises were seen in the south-east (6.9 per cent) and the north (5.6 per cent), while London enjoyed the strongest annual rise, with prices 4.3 per cent higher than they were in January 2011.
What's more, Rightmove revealed that prices in the capital are on the verge of taking over their highest ever level.
Miles Shipside, director of the site, said: "We're seeing a strong spring bounce in asking prices this year, but the ball is still a lot smaller than it was before the credit crunch as market volumes are constrained.
"The biggest jump in new sellers' asking prices for nearly 10 years indicates there is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding.
However, he warned that if your local market does not have these characteristics, then price projections might be based on "little more than seasonal optimism" and buyer response could be less than hoped for – highlighting the importance of choosing properties in the right area.
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