Why property is still a strong long-term investment

There is increased cause for optimism about the future of buy-to-let investment, as the latest statistics show landlords’ income from property hit a record high of £15 billion in the most recent year* – reflecting the importance of buy-to-let as an economic driver.

As the reliance of UK investors on buy-to-let grows, it is vital that the Government introduces policy to help investors in this sector. Indeed, the recent Government Housing White Paper is a step in the right direction as it recognises the value of the rental market as a solution to the housing crisis.

As an investment class, property continues to outperform other asset classes over the long-term, including government bonds, cash ISAs, and shares.**

Buy-to-let property will still be attractive to investors even after the Government’s planned tax relief changes are brought in, beginning gradually in 2017.

After these changes, landlords will still have access to over £14 billion in tax relief, including £6.3 billion worth of relief on the interest paid on mortgages.

Stephen Ludlow, Chairman at ludlowthompson, comments: “With record low interest rates on bank accounts, individuals are increasingly relying on residential property for their investment income.”

“Buy-to-let property consistently delivers strong returns over the long term, and it is now a key investment sector.”

“The Housing White Paper shows how the Government is finally beginning to acknowledge that renting is, in fact, part of the solution to the housing crisis. Private landlords play a vital role ensuring there is a healthy supply of high-quality rental accommodation that enables labour mobility.”

For any interested buyers, please use our trusted, extremely capable mortgage brokers, contactable via this email: ludlowthompson@heronfinancial.co.uk.

*HMRC’s latest statistics **MSCI UK Annual Residential Property Index Launch 2017