Buy-to-let: Is it still profitable as an investment?


Back in 1997, the ‘buy-to-let’ mortgage initiative revolutionised the market. It did not take too long for people and advisors to realise that it was a flexible way of saving linked to property purchase with bricks & mortar considered a more stable form of investment. Consequently buy-to-let mortgage products grew in popularity in the years following the millennium and thousands were seduced by the idea of buying a second property and making money from it.

London is currently one of the best locations for a buy-to-let investment in UK. Experts say it will continue to drive the UK rental market in the coming years. In fact in January 2014 buy to let lending increased 11% in volume compared to December. It has produced returns of over 1,200% since 1996, and it has been the outstanding investment of the past years, providing average returns that easily outstrip those of other major asset classes.

As well as a large supply of tenants and higher than average rents, buy-to-let landlords in London can take advantage of the opportunity that living outside of London may mean cheaper rent, but can easily amount up to thousands of pounds in commuting costs. Buy-to-lets in London can exploit their unique position in the capital for quicker commutes.

So the scenario for buy-to-let investors is still positive, as the market still proves itself an outstanding investment with high profits guaranteed.

More Stats: Deloitte  

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