Investing in property "more profitable than stock market"

Tue 17 May 2016

Buy-to-let investors typically enjoy a greater return than those who choose to invest in FTSE 100 companies.

New research reveals that while total returns on property investments rose by 9.57 per cent in the 12 months to the end of March, the London-based stock exchange has lost 1.4 per cent in the year to date.

Allison Thompson, managing director at property specialist Leaders, says: “Despite recent buy-to-let tax changes imposed by the government, there is no doubt that the property market still offers an extremely attractive investment opportunity.

“With returns increasing by almost ten per cent over the last year, investing in property is a shrewd way for people to use their savings. In comparison, the stock market has failed to deliver a return for many investors and even the best savings accounts are typically offering rates of less than two per cent at the moment.”

London continued to drive the buy-to-let market in the 12 months in question, with landlords enjoying a 16.49 per cent increase in returns. It was followed by the east of England (13.18 per cent), the south-east (12.1 per cent) and the East Midlands (8.59 per cent), according to Property Partner’s residential market index.

Allison adds: “While returns may be greatest in the south, investors should also consider buying to let in the north where purchase prices are often cheaper and demand in many areas is rising rapidly. In particular, Manchester has witnessed a sharp spike in investment activity in recent months.

“Those who wish to benefit from the largest returns in the south can still find good value for money and, with the help of a local property expert, can pinpoint the most up-and-coming towns in their region.

“Properties to rent remain in high demand, with experts predicting that more than half of young people will rent their home by 2025. This makes it a great time to invest in property and benefit from excellent market conditions.”

For more information and expert advice on buying to let in your area, please contact your local Leaders branch.