Rental income from buy-to-let increased 15% last year as investors add to their portfolios

Rental income from buy-to-let property investments increased 15% over the last 12 months to £18.7bn, up from £16.2bn the previous year as investors continued to add to their buy-to-let portfolios.

The income that private investors now derive from BTL property, represents 15% of the total income (£109.7bn) that investors generated last year. Meanwhile interest from savings accounts makes up just 5% of the income that UK private investors received in the last year.

So BTL is three times more important in terms of income generation for UK savers than bank accounts and cash ISAs.

These numbers show that BTL, once a minority activity, is now a cornerstone of private investment in the UK. That’s because BTL can offer both stable long-term income streams and capital growth.

Whilst BTL is not immune from price falls its certainly avoided some of the intense volatility of the stock market over the last six months.

The supply and demand imbalance of property in the UK has helped underpin high yields on buy-to-let properties. Downward pressure on mortgage rates has also made it cheaper for landlords to add to their portfolios. If you are considering getting a mortgage, please contact Jigsaw Mortgages here.

During periods of economic uncertainty, investors also often look towards property as a safer option than other mainstream asset classes. Given that the full effect of Brexit is still unknown, this may have also been a consideration for some investors over the last year.

Stephen Ludlow, Chairman of ludlowthompson, says: “Growing rental income from buy-to-let shows investors are wasting no time in building out their portfolios.”

“Buy-to-let is increasingly becoming a core part of individuals’ investment portfolios and retirement income. While house prices are not a one-way bet, property has historically seen far smaller falls in value during recessions than other asset classes like shares.”

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-          Nina Booth on Google Reviews

I have let my flat through Ludlow Thompson recently, everyone I came into contact with has been really professional right from the start. Very happy with the service.

-         Graham Crosby on Google Reviews

Stephen, Hannah and Lee in the management team have a done a great job in finding 2 sets of tenants for my flat in the last 3 years. They are responsive, hard working and professional and best of all I have virtually no voids in that period. They take a lot of stress out of the process and I couldn't recommend their Lettings team more highly. Thanks to a great job done.

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