Investing in the buy-to-let sector has proved a shrewd move for many private landlords, with fresh research revealing that they have earned returns of more than 1,000% since 1996, trumping the performance of shares, bonds and cash.
Fresh research from buy-to-let specialist, Sequre Property Investment, reveals that landlords which invested £100,000 into UK property 21 years ago could now have a portfolio worth £1.23m – more than 11 times the value originally invested.
In fact, the study suggests that over the past two decades, landlords could have seen their buy-to-let returns increase by as much as 1,131%, thanks to a combination of rental yields and capital growth.
Over the last 21 years, average house prices have increased by 282.66%, resulting in a lucrative investment for landlords. This far surpasses returns derived from ISA’s, stocks and shares with both capital growth and rental returns taken into consideration.
Graham Davidson, managing director of Sequre Property Investment, said: “Over the past 21 years, the property market has churned through it’s typical cycle and even after suffering the effects of the 2008 crash, landlords have still seen over 1,000% returns.
“Property is an asset that can perform well in both the short and long term, and despite the tax changes and additional economic factors, we are still yet to see another investment type in the UK that can offer the same level of returns that buy to let can.
“It’s clear that landlords are still reaping the benefits of a thriving property market. These types of returns are more attainable to the average investor than some might think – by putting savings into property as opposed to leaving them sat in the bank gaining very little, investors can see their returns double in the space of a few years.”