The Property Ombudsman

Buy to let returns hit 1,400%

The best performing asset class

Buy to let property was recently highlighted as the best performing asset class after research compared its returns to all other investment types.

The research demonstrated that since 1996, buy to let landlords will have seen returns of almost 1,400%; this means that every £1,000 invested in buy to let property, would now be equivalent to £14,897.  

The report compared a number of other investment types including UK shares, cash ISAs, commercial property and government bonds; but buy to let returns ranked number 1 with the overall return percentages hitting more than 1,300%.

Type of investment

Amount invested in 1996

Now Worth

Return

Buy To Let

£1,000

£14,897

1,390%

Commercial Property

£1,000

£4,494

349%

Government Bonds

£1,000

£3,329

233%

UK Shares

£1,000

£3,119

212%

Cash ISAs

£1,000

£1,959

96%

 

For investors purchasing a buy-to-let property with a 75% loan-to-value mortgage 20 years ago, the average property would have cost around £55,000. When compared with today’s house prices, this represents an average annual growth of 16.2%.

With the number of buy to let investors reaching a staggering 1.63 million this year and buy to let lending predicted to hit the £30 million mark, experts are forecasting that up to a third of homes will be owned by buy-to-let landlords by 2032.

Graham Davidson, Managing Director at Sequre Property Investment, comments on the latest research:

“We have always been confident that buy to let property produces the best returns and this latest research echoes our thoughts. This report demonstrates how much more capital can be gained from buy to let property as opposed to other investment types, not just by small margins either. There is a huge 1,041% between the top two ranking investment types.”  

“With the changes to pension freedoms having been put into place this month, many of those approaching 55 will be reassessing their options when it comes to their savings. 70% of younger landlords now completely rely on their properties for retirement, this is due to the higher returns that can be generated and also so investors have a tangible asset that can be passed down to loved ones. In terms of a low risk, tangible investment, there are few others that perform better than buy to let.”

If you’re considering purchasing a buy to let property in the UK or overseas, contact Sequre today. We specialise in sourcing bulk deals at a discounted price, meaning our investors get instant equity from day one. We can also recommend mortgage brokers for those who are seeking financial guidance on their buy to let portfolio, or may be considering refinancing their property to fund a buy to let purchase. We work with professionals in the industry who can provide help and advice in all given situations. To find out more, contact our team today on 0800 011 2277.

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