London Property Buy to Let News

Long-Term Property Investment Means Buy-to-Let is still a Sound Bet


A number of factors have recently effected the property sector, higher taxes, more stringent mortgage rules, political and economic uncertainty and so on. This has made the buy-to-let market less attractive to existing and potential landlords.

But the reality is that property is still a solid and stable long-term investment.

With savings rates from banks and building societies still incredibly low, residential property remains one of the most lucrative supplements to income available to most would-be investors.

Recent figures from property investment platform British Pearl, which analysed five-year investments made over the last half-century found that investors were in profit 83% of the time.

The study found that between 1968 and 2018 the average profit was 58.6% on a property held for five years.

Over the course of the last 50 years, property prices only fell in 5 periods meaning an overall success rate of 89.1% was enjoyed. When additional assessments were made on stamp duty costs, legal fees, higher mortgage rates vs rents and interest rates a further three years were identified were a real-terms loss would have been made.

An overall success rate of 82.6% in the period.

The best profit percentage increase would have been experienced by investors purchasing in 1969 and selling in 1974 who would have seen a 148.6% return over the period.

The sharpest decline in the last 50 years occurred between 2007 and 2012 when UK average values decreased by 7.9%.

British Pearl Investment Manager, James Newbury commented;

“This research shows investors who play their cards right and hold their nerve in the midst of economic or political upheaval are still likely to come out on top.

“History shows us that investors who are prepared to weather storms rather than run for cover are still able to make strong returns at times from investments that present a very limited risk of loss.

“While our analysis shows housing has been a solid investment over time, we know that returns can be bolstered with careful property selection, identifying regional trends and areas of rental yield strength.

“The message, not just for investors but homeowners, too, is to play the long game. UK property has a track record of returns and, no matter how tempting it is to think prices are unsustainable, the level of demand for housing in Britain makes property one of the most attractive asset classes on an ongoing basis.

“Those investors who ran for the hills after the dip between April 2007 and April 2013, only for growth to recover in the years that followed, will be kicking themselves for acting on impulse and abandoning property altogether.

“The secret to successful property investing is ultimately the same now as it ever was. The market consistently rewards those who remain level-headed, diversify portfolios and do their research.”

Here at Walton Estates we echo this sentiment. Property has been, and is likely to remain, one of the best and most stable investments you are able to make. With almost guaranteed returns.

Contact us to find out more.

Contact us to arrange a valuation or consultation on 0207 581 4540 or 0788 764 4929