INVESTMENT returns from buy-to-let property have beaten a range of other asset classes including gold, cash and fine art over the last decade, new research has found.
The data comes from letting inventory and property compliance firm VeriSmart, which analysed the performance of the UK buy-to-let market compared to other assets over the 10 years since the financial crisis.
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It found that investing in the FTSE 100 would have brought the biggest return in terms of annual capital gain and percentage yield, with an increase of 119 per cent, while the value of classic cars is up 94 per cent over the same period.
Buy-to-let property delivered the next best returns, up 92 per cent, beating gold, up 60 per cent, a 16 per cent increase from cash and a fall of four per cent from fine art. With rising rental yields and annual gains in house prices, volatility has also been lower in the property sector, VeriSmart said, despite tougher legislation hitting the sector.
Successive chancellors have brought in higher stamp duty, a reduction in high rate tax relief for landlords and a higher rate of capital gains tax on residential property profits, VeriSmart noted.
“Last week’s Spring Statement was a missed opportunity for the government to backtrack on its previous attacks on the buy-to-let sector, attacks that have done little to solve the UK housing crisis and if anything, have caused further restrictions in the level of suitable stock while keeping rental prices buoyant as a result,” said Jonathan Senior, founder of VeriSmart.
“However, the buy-to-let sector remains the backbone of the UK property market, helping to support aspirational homeowners as they work to overcome the sometimes impossible financial barriers of homeownership. The need for this support is clearly evident as it remains one of the most lucrative investments one can make.
“With little being done to address property supply or affordability on a meaningful scale, this is likely to continue and, despite the government’s best efforts, there will always be demand for a good, honest landlord providing above the board accommodation to those that need it.”
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