1,400 per cent return for property buyers in 1996, survey finds

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13th April 2015 14:50 - Housing

During a time when many people are having trouble getting onto the property ladder, landlords are said to be benefiting a 1,400 per cent 1,400 per cent return for property buyers in 1996, survey findsreturn on buy to let properties.

According to the survey, conducted by Wriglesworth Consultancy for lender Landbay, anyone who bought a buy to let property in 1996 is now seeing a return of as much as 1,400 per cent. This means every £1000 invested in 1996, is now worth £14,987.

The findings were released the same week that a report claimed the rising house prices and stationary wage growth, is resulting in an increasing amount of people aged 18 to 45, giving up on ever buying their own house.

Over the years, the increasing house prices – even after the financial crisis – have resulted in investors who purchased property in 1996 benefiting from large capital gains.

However, at the same time, young people and first time buyers have found getting a mortgage difficult, which in turn has pushed up rent.

Policy manager for Generation Rent, Seb Klier, said that the amount of people choosing to invest in property is having a negative effect on tenants.

Klier said: “Investment in existing properties sucks money out of the economy by funnelling tenants’ pay packets, into the pockets of landlords.

An investor who bought, say, equities instead would be putting money into the wider economy, creating jobs and wealth for others.”

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