Buy-to-let can be a better investment than the stock market, says research

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New research has revealed that buy-to let-property investment returns rose by 9.57% in 12 months from April 2015 to March 2016. In the same time period, the FTSE 100 index on the London Stock Exchange lost 1.4%.

The research was carried out by letting and estate agents Leaders, and was the focus of a July 2016 article by the Stroud News & Journal. Leaders’ Managing Director, Alison Thompson, said:

“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.”

According to Leaders’ research, London had the largest rise in buy-to-let returns with a 16.49%. The East of England had 13.18% growth, the South East 12.1%, and the East Midlands 8.59%.

Though returns are greater in the South, Thompson said that investors should consider properties in the North of England as they are cheaper. Manchester is one area where demand for rented property is high and property investment has grown in recent months.

Interest rates are still low and there are many attractive commercial mortgages currently available for buy-to-let landlords.

Despite financial uncertainty following Britain’s vote to leave the UK, the Financial Times reported in July 2016 that buy-to-let mortgage sales increased by 3% in June compared to the previous month. Ian Hill of financial analysts Equifax Touchstone anticipates that mortgage sales will continue to rise with lenders “encouraging buyers with competitive new deals at lower rates.

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