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Buy-to-Let Property Outperforming UK Stock Market

The UK’s buy-to-let property market is now outperforming the FTSE 100, says a new report.

UK Buy-to-Let Property Outperforms UK Stock Market

The UK’s buy-to-let property market is now outperforming the FTSE 100, says a new report.

The Property Partner Residential Market Index (PPRMI) has revealed in their latest figures that the UK buy-to-let market has seen increases of 9.6% in the year to March, whilst the UK stock market has fallen 3.9%.


Regionally, profits were greatly varied, with London leading the market as buy-to-let returns peaked at 16.5%, performing better than most other investment classes. In the north east, the average return was much lower, with landlords and investors benefitting from returns of 2.6%, whilst properties in Yorkshire generated 4.5%.


However, the PPRMI were keen to stress that the majority of these profits are borne out of the rising house prices, which peaked last month in England and Wales at nearly £300,000.


The figures, calculated using non-mortgage paying cash investors and accounting for management costs, indicate that rental income only accounted for a small proportion of profits in prime locations. In London, just 2.8% of profits were generated by rents, with the majority of the gains made from the increasing value of property in the capital.


The report also analyses the profitability of buy-to-let investments for those with mortgages, analysing long term figures to assess the returns made over a sustained period of time.


The PPRMI found that over the past two decades, those with buy-to-let property mortgages have seen an average increase of 14.75% across the UK, with this figure rising to 24.3% for properties in London.