Ed Stansfield, spokesman for economic research firm Capital Economics, says that buy-to-let almost sells itself as it has had astonishingly high returns over several years – although that has been less true over recent times.
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He added: “There was a time during the early part of this decade when buy-to-let investment outstripped all other asset classes.
“People have woken up to this coupled to the fact that fund managers are causing increasing frustration because of their performance.”
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Over the last few years, the popularity of buy-to-let investment has grown thanks to lower interest rates making mortgages cheaper. The income received from rent has also seemed more attractive when compared to other financial investments.
Mehrdad Yousefi, head of intermediary mortgages at Alliance and Leicester said last year that the popularity of buy-to-let investment could be attributed to “the nation’s obsession with bricks and mortar”.
