Buy-to-let hailed as a lucrative and secure investment option

New research has found that during the last decade, buy-to-let in Britain has remained a secure investment, much favourable to other options like cash, fine art and gold.

A study by VeriSmart, a property investment and compliance assessment supplier within the rental market, examined the return on different investments and how the various markets have performed during the last ten years.

The report found that when annual rises in house prices are considered alongside increases in rental yields, an investment in buy-to-let property would have brought in a 92% return by today.

This is significantly higher than the 60% return making an investment in gold would have brought and a much bigger yield than the 16% increase in cash would have generated. Investing in fine art would have seen a 4% drop in yield over the last ten years, the research shows.

Unlike the volatility of FTSE 100, cash and gold investments in recent years, the study reveals how investing in the property market, which has endured sustained growth, is the most reliable investment option.

The conclusion that investing in bricks and mortar remains one of the most stable investments available, comes in spite of successive governments targeting the buy-to-let sector with a string of legislative changes, including a reduction in high rate tax relief for landlords and an increase in stamp duty.

Jonathan Senior, founder of VeriSmart, spoke of how buy-to-let remains a secure way for people in to invest money.

“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 home ownership. The need for this support is clearly evident as it remains one 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 going forward 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,” Senior added.

If you’re thinking about investing in buy-to-let or expanding your investment portfolio, property auctions can be a great way to find and purchase investment property. Take a look at the lots listed for our next property auction.