Leaders and Romans show buy to let remains best investment

Sister agencies Leaders and Romans have undertaken research to show that property has been the most lucrative investment in the UK over the last decade - bar none.

The research compared the return an investor would have enjoyed in each of the four markets had they invested an initial £50,000 in 2006.

It showed the buy-to-let market has generated a 175 per cent return over the last 10 years, equating to a profit of £138,936. 

In comparison, gold has delivered a profit of £50,673, interest on savings accounts was worth £14,447 and a £50,000 investment in the FTSE 100 has yielded just £2,969 over the same time.

Whilst gold, stocks and shares and savings offer greater liquidity than property, which can take several weeks to buy or sell, this does not deter shrewd investors who value the dual benefits of an immediate monthly rental income and capital appreciation over time.

The figures provide impressive ammunition to agents persuading people of the merit of buy to let investment, notwithstanding recent political and economic uncertainty.

“As well as the most rewarding, it is also the safest of all the investment options over the long term. We have seen historically that, although cyclical, house prices always rise in the long run. With the acute shortage of housing across the UK, this is only likely to continue.

Cautious investors can minimise their risks in a number of ways, including utilising rent guarantee schemes to effectively insure their income – an option not available with other investments” says Allison Thompson, managing director at Leaders.