28 Apr

Buy-to-let offers great returns

Buy-to-let offers great returns

Buy-to-let investors have seen a return of 16.3 per cent since 1996, according to new figures.

Outperforming many other forms of investment, becoming a landlord could be the perfect way to enjoy strong returns, reports Paragon Mortgages.

It is estimated that average buy-to-let investors will have made £12,000 profit on every £1,000 they have put into property since mortgages for landlords were first launched in 1996.

During the same period, shares would have returned around 6.8 per cent per year, bonds 6.5 per cent and savings held in a bank around four per cent.

At the moment it is estimated that one in seven mortgages are granted to landlords and there is little sign of demand for rental properties declining.

John Heron, director of mortgages at Paragon, said: "Buy-to-let mortgages have become such an integral part of today's mortgage market that you easily forget that the product didn't exist prior to 1996.

"The private-rented sector remains an important and growing sector and now represents 18 per cent of the UK's housing market."ADNFCR-1222-ID-801715571-ADNFCR

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