Buy-to-let the UKs most profitable investment

Buy-to-let the UK’s most profitable investment

23rd August 2007
Buy-to-let property has been the most profitable asset type in the UK so far this century, a new study has found.

According to statistics released by the buy-to-let broker Landlord Mortgages, investors who purchased a property to rent out with a deposit of £25,000 in 2000 could expect to have made a profit of £33,288 over the past seven years.

In comparison, an investor who put the same amount into the FTSE 100 would have achieved a profit of just £1,443, due to the inconsistent performance of the stock market in comparison to the strong and steady growth of the housing sector.

Lee Grandin, managing director of Landlord Mortgages, said: "While buy-to-let property may not be an option for everybody, our latest research shows that you can make considerable gains on capital invested in this asset class."

He added, however, that buy-to-let often requires more commitment from investors than other asset classes and should not be entered into lightly.

"Potential landlords need to make sure they do their research thoroughly and understand the nature of the market fully before they make this type of commitment," he said.

© 7BestInvest Ltd 2007.