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Buy-to-let landlords earn returns of over 1,000% since 1996

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.”

  • Mark Wilson

    Any wonder why government is wanting to cool the sector? Will the next 20 years bring such returns? My money says no way!

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    I would have been delighted with even 10% of this alleged capital growth. I don't know where these figures have come from but I and many of my fellow landlords would struggle to break even over the last 20 years of capital growth.

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    Exactly, David. It's another London/SE-centric report that takes no account of the areas that are cheaper now than before 2008. Plus this seems to be using gross, broad-brush returns with no accounting for all the mortgage costs/management costs/accountancy and legal fees/refurbishments along the way.

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    And there are some well known cases of landlords going spectacularly bankrupt. No mention of them I see.

    I would have liked detail on how these numbers have been crunched as it very much depends on area, type of property, type of tenant and whether or not there has been any allowance for voids, rent arrears, damage, legal costs, etc, etc, etc.

    Some 'happy numbers' produced for marketing purposes perhaps???

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