Buy to let still strongest asset

We enjoyed reading this article recently, courtesy of Pinnacle Alliance.

Investors today seem to have more options than ever before: from peer to peer lending, right through to the tried, tested and trusted realm of bricks and mortar. However it has been the latter that has delivered consistently strong performances year upon year. Here we take a look at why the Buy to Let asset, as well as the wider UK property market, remains as one of the strongest asset classes in the UK.

When considering other asset classes, such as equity stocks and bonds, investors are faced with returns that are, on average, half that of property. Specifically over the last five years “£100,000 invested in property brought in a 132 return, whereas the same sum put into UK equities… made 83 per cent” (This is Money 2015).

Rental properties: More in demand than ever before

With the economic outlook looking positive, and with mortgage rates lower, you may think that many would be flocking to purchase new homes. However upon inspection house prices to income ratio reveals a staggering gap, with London representing homes that are on average 15.7 times higher than the average salary (The Financial Times 2015). This of course is promising news for a buy to let market and its respective investors, serving only to help healthy predictions of in-demand rental properties.

 

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