Bricks and Mortar: investment or irrelevant?

Investing in bricks and mortar, putting money into property, has long been considered a sound investment in the UK. With the approach of Brexit, and all that entails, is it still a worthwhile investment, or has it become irrelevant for investors?

First, it’s worth noting that UK property values can be resilient while the economic cycle (inevitably) rotates through a period of downturn, largely because prices and the stock market are not necessarily connected.

And research published by mortgage broker Commercial Trust this month suggests that people still trust bricks and mortar-backed investment, based on historical long-term growth and a return of more than 10% since the 1970s.

Government tax changes for buy-to-let property owners have had an impact on a previously fast-paced market, but although the pace is slower,  mortgage applications for buy-to-let properties increased by more than 5% in 2018*. This is partially due to the number of applications received from over-55s, who now account for 39% for all buy-to-let activity, and possibly as a result of the increase in maximum age at the end of mortgage criteria offered by a large number of brokers.

Chief executive at Commercial Trust, Andrew Turner, said:*

“Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes. I fully expect that the returns fair better than many other forms of investment.”

This all suggests that the potential for property investment remains very real.

Whether you’re buying to live, or buying to let, you’re in safe hands with Lifestyle Sales & Lettings. We’re proud of our reputation as one of the most trusted estate agents in South Lancashire.

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