EAST Dorset is the second most profitable area in the South West to own a home, according to new research.

Of the top 10 local authority areas in the region identified in analysis by mortgage lender Kent Reliance – part of Onesavings Bank, half are in Dorset.

Through rental income and value increases, landlords in East Dorset are expected to average £295,483 in profit over the next 25 years – behind only the Cotswolds where more than £333,000 is expected.

Purbeck and Christchurch are also above the national average of £161,922 while Poole and West Dorset also feature in the top 10 areas in the South West.

John Eastgate, sales and marketing director of OneSavings Bank, said: “The buy to let market is undergoing a sea change.

“Regulatory and taxation changes have altered the market dynamic, reducing its attractiveness to amateur landlords, and increasing the tax bills of higher-rate investors.

“In spite of rising costs, there are still healthy returns to be found in property for committed investors.

“However the days of speculation are gone.

“It is a long-term business endeavour, requiring commitment and expertise.

“Investors must be prepared to undertake business and tax planning, understand the risks as well as the rewards, and, most importantly, the responsibilities they have towards their tenants.”

The research assumes a one per cent rise per year in house prices and rent and also includes the £310,000 estimated in running costs over 25 years.