Buy-to-let gives better returns than gold, cash and fine art

Michael Lloyd

March 20, 2019

Buy-to-let has given greater returns than gold, cash and fine art for investment in the last decade, combined lettings inventory and property compliance specialists VeriSmart has found.

When considering the annual gain in house prices along with the increase in rental yields, an investment in the sector a decade ago would have brought a 92% return today, higher than the 60% return that investing in gold would have brought and the 16% increase in cash or the -4% drop in fine art.

Jonathan Senior, founder of VeriSmart, said: “Last week’s Spring Statement was a missed opportunity for the Government to backtrack on their previous attacks on the buy-to-let sector, attacks that have done little to solve the UK housing crisis and if anything, have caused further restrictions in the level of suitable stock while keeping rental prices buoyant as a result.

“However, the buy-to-let sector remains the backbone of the UK property market, helping to support aspirational homeowners as they work to overcome the sometimes impossible financial barriers of homeownership. The need for this support is clearly evident as it remains one of the most lucrative investments one can make.

“With little being done to address property supply or affordability on a meaningful scale, this is likely to continue going forward and despite the government’s best efforts there will always be demand for a good, honest landlord providing above the board accommodation to those that need it.”

It’s also important to note that the growth in the property market has been by far the most reliable option with the FTSE 100, gold or cash providing a far more volatile option that is also open to a larger degree of impact from political and economic factors as well as influence from other foreign countries.

While classic car investment sits ahead of property, that too is made or broken on the car itself rather than the overall market and while a nice art collection may brighten your walls, it is also harder to find a buyer for – even when compared to the current Brexit property market slowdown.

Despite successive numerous legislative penalties including an increase in stamp duty, a reduction in high rate tax relief for landlords and a higher rate of capital gains tax on residential property profits, property remains one of the best and most stable investments available.


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