Investing in property continues to deliver ‘very healthy returns’

Despite a host of anti-landlord policies adopted by the government, including higher stamp duty and the phasing out of mortgage tax relief, as well as growing uncertainty around Brexit, the buy-to-let market continues to offer good returns, and not just thanks to decent rental yields.

Property values are continuing to rise at a steady level, as reflected by the latest Halifax house price index, which shows that prices increased in August at the fastest pace this year.

Home prices rose 1.1% from July, the biggest one-month rise since December and follows on from July’s 0.7% growth.

“Landlords should feel reassured that despite choppy political and economic waters, the property market remains stable,” said Mark Weedon, head of institutional investment, at Property Partner.

According to the mortgage lender, annual house price growth has now picked up to 2.6% from 2.1% in July, supported by record-low borrowing rates and a severe shortage of properties for sale.

Graham Davidson, managing director of buy-to-let specialist, Sequre Property Investment, commented: “The market is proving to be exceptionally resilient with so many economic and political changes in 2017.

“Whilst landlords have experienced a fair few obstacles, the marketplace is continuing to deliver very healthy returns indeed, this is due to stock shortages and an incredibly high tenant demand.

He added: “With sales and mortgage transactions continuing at a healthy level each month and a generous annual growth of 2.6%, I expect we’ll continue to see further growth towards the end of the year.”

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