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Buy to let property investors have struck gold over the last decade with their rental property investments.
Research carried out by combined lettings inventory and property compliance specialists VeriSmart, buy to let property investment has outperformed gold, cash, or fine art over the last decade
When considering the annual gain in house prices along with the increase in rental yields, an investment in the sector a decade ago would have brought a 92 per cent return today.
Gold the other hand would have brought a return of 60 per cent, while cash only generated 16 per cent, and fine art would have incurred a loss of 4 per cent.
Only the FTSE 100 with a return of 119 per cent, and classic cars at 94 per cent outperformed buy to let property.
It’s also important to note that the growth in the property market has been by far the most reliable option with the FTSE 100, gold or cash providing a far more volatile option that is also open to a larger degree of impact from political and economic factors as well as influence from other foreign countries.
While classic car investment sits ahead of property, that too is made or broken on the car itself rather than the overall market and while a nice art collection may brighten your walls, it is also harder to find a buyer for – even when compared to the current Brexit property market slowdown.
All things considered and despite successive Chancellors hitting the buy to let sector with numerous legislative penalties including an increase in stamp duty, a reduction in high rate tax relief for landlords and a higher rate of capital gains tax on residential property profits, UK bricks and mortar remains one of the best and most stable investments available.
Founder of VeriSmart, Jonathan Senior, commented: ‘The buy to let sector remains the backbone of the UK property market, helping to support aspirational homeowners as they work to overcome the sometimes-impossible financial barriers of homeownership. The need for this support is clearly evident as it remains one of the most lucrative investments one can make.
‘With little being done to address property supply or affordability on a meaningful scale, this is likely to continue going forward and despite the Government’s best efforts there will always be demand for a good, honest landlord providing above the board accommodation to those that need it.’