Leaders, the independently owned letting specialist, has been looking at the most recent review of the buy-to-let industry by the Association of Residential Letting Agents (ARLA), with particular focus on the South East, which is the company’s prime territory.

The figures show a continuation of strong annual rates of return nation-wide, along with a sharp increase in the amount and quantity of buy-to-let loans across the country. In the South East, which accounted for the biggest percentage of buy-to-let loans, there was an increase in lending of 50% per month, and returns in this area averaged at 11.35% for cash purchases and 23.94% for geared investment.

Across the country annual rates of return were also strong – the lowest being in 10.81% in Prime Central London for cash purchases and 22.60% for geared investment. Compare this to the measly 3 or 4% on offer from the best of the savings accounts and it is clear why buy-to-let is still thriving.

“Of course, investing in property is not as easy nor as free of risk as opening a savings account,” says Leaders’ Managing Director, Paul Weller, “but at the same time, letting a property for excellent returns need not be a headache, if you do your research carefully. Using a reliable, experienced letting agent for sensible advice and to handle everything for you helps to minimise the risks and removes the hassle factor.”

The company’s own figures support the findings of ARLA’s recent survey, with a healthy increase in the total number of properties it has on its books in 2003 from the previous year. The total number of new lets across its regions in the last quarter of 2003 was similar to that of 2002, and in December 2003 the total number of lets (new and renewed) was up 9% from December 2002.

Leaders also reports strong rents, with an increase of 3.5% company-wide. In Surrey, where rents were already high, there was a slight increase of 0.5% in 2003 from the previous year. In Sussex rents rose 4.5% from the previous year and by almost 4% in Hampshire. The average monthly rent in Sussex in December 2003 was £685, in Surrey it was £740, and in Hampshire it was £585.

“Buy-to-let is not a way to make a ‘fast buck’ but for those investors who have done their research carefully and who are prepared to invest in the long-term, we believe it is one of the best investments around, and it is encouraging at the start of this new year to see such a strong picture for lettings,” says Weller. “We are looking forward to a busy year with more properties, landlords and tenants than ever before.”