Could buy to let portfolios see a rise in value?

01 June 2010

Written by Michael Aglony

Buy to let mortgage holders may see a rise in the value of their portfolios as the latest figures from the Land Registry show there was an increase in house prices in April.

The average worth of a home in England and Wales rose 0.2 per cent in the month to £165,596, which constitutes an 8.5 per cent year-on-year increase.

All regions saw an annual gain in property values, with the highest recorded in London at 14.8 per cent and the lowest in Yorkshire and the Humber, up 0.7 per cent.

However, not all areas saw a rise during the month. The north-east saw the most positive monthly movement, adding 3.1 per cent to the average price of a home, while the Yorkshire and Humber saw the sharpest falls of minus 2.2 per cent.

April's figures mark the sixth consecutive month that property values have grown in England and Wales.

According to the organisation, the number of house sales in the countries grew by 49 per cent to 40,502 in February, compared with 27,190 at the same point in 2009.

This research supports that of Paragon Mortgages, which recently found that the average value of a buy to let portfolio increased by 6.1 per cent in the first quarter of the year.

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