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Golden age of buy-to-let - 21 August 2007

The latest industry research has suggested that buy-to-let property has been the best performing asset class in Britain so far this century, outstripping traditional stocks and precious metal markets for returns.

Landlord Mortgages have found that on average, a £25,000 investment made in buy-to-let property in 2000 would yield a figure of £33,288, or 133 per cent. This figure compares well with the returns that would have been gained through FTSE 100 companies, which would have yielded just 5.8 per cent, the lowest returns in the survey.

Other comparisons were made with investing in gold, which would have given a profit of some £19,818, and the average savings account which would have grown by £9,755.

These figures prove that the buy-to-let market has been one of the golden investments of the early years of the 21st Century. The recent jitters in the stock markets around the world that have been attributed to concerns over the sub-prime mortgage market in the US, and mean there are a number of industry watchers predicting that buy-to-let could soon be paying the price as UK mortgage lenders begin to tighten their borrowing criteria.

However, Lee Grandin, managing director of Landlord Mortgages, said he does not expect buy-to-let returns to suffer as a result of this.

 

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