Safe as houses - 1,400% returns on Buy to Let since the 1990s

April 20th 2015
By: Jon
Safe as houses - 1,400% returns on Buy to Let since the 1990s

Safe as houses! It’s a phrase that many of us have heard and maybe used, but research presented this week has calculated 1,400 % returns on buy-to-let investments since 1996.

This means that those lucky enough to invest in buy to let property during the 1990s would have seen every £1,000 invested turn into £14,897 by 2015 assuming a 75% Loan to value mortgage. The research undertaken by lender Landbay summarises that this translates to a an annual compound return of 16.2%, which outshines most other when compared with other types of investment

Comparatively, Landbay suggest that the same £1,000 sum invested into UK shares would have increased to an average of £3,119 and £4,494 for UK commercial property investors.

Landlords with a mortgage also benefit from greater returns as they can offset the interest incurred to get a tax break on the rental income.

Looking forward the researchers have predicted that assuming house prices continue to rise investors could expect £1,000 invested at the end of 2014 become £2,874 by 2024, an increase of 11.1%.