{"id":740,"date":"2022-02-21T13:30:42","date_gmt":"2022-02-21T13:30:42","guid":{"rendered":"https:\/\/www.benhams.com\/press-release\/?p=740"},"modified":"2025-01-22T11:36:04","modified_gmt":"2025-01-22T11:36:04","slug":"buy-to-let-returns-blow-isas-out-of-the-water","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/press-release\/buying\/buy-to-let-returns-blow-isas-out-of-the-water\/","title":{"rendered":"Buy-to-let returns blow ISAs out of the water"},"content":{"rendered":"

\"ISAs<\/p>\n

The latest market analysis by London lettings and estate agent, Benham and Reeves<\/a>, has revealed that despite the government\u2019s best attempts to dampen Buy-to-Let profitability, you\u2019re far better off investing in bricks and mortar compared to chasing dreams of becoming an ISA millionaire.<\/p>\n

Benham and Reeves analysed data over the last 10 years looking at the average annual return when investing in a stocks and shares ISA, a Cash ISAs and the Buy-to-Let sector, as well as what this return would look like based on an example investment of \u00a320,000.<\/p>\n

The research shows that investing in a stocks and shares ISA hasn\u2019t been a bad shout and over the last decade, they\u2019ve returned an average annual rate of growth at 2.3%. As a result, a \u00a320,000 investment 10 years ago would have yielded a return of \u00a325,156 in addition to your original \u00a320,000, although this climbs to \u00a347,381 had you invested \u00a320,000 on an annual basis.<\/p>\n

A cash ISA, on the other hand, hasn\u2019t been such a strong investment and, in fact, the average annual rate of growth sits at -4.1%. Meaning a \u00a320,000 investment 10 years ago would have seen you down almost \u00a37,000.<\/p>\n

Benham and Reeves then analysed the average annual net yield on a Buy-to-Let investment and the research shows that, at an average annual return of 4.3%, it\u2019s been by far the better option when compared to the two avenues of ISA investment.<\/p>\n

Those to have invested just \u00a320,000 into bricks and mortar a decade ago would have seen this investment climb by \u00a310,470 today. An ongoing annual investment of \u00a320,000 per annum would see this return climb to \u00a373,959.<\/p>\n

Director of Benham and Reeves, Marc von Grundherr, commented:<\/strong><\/p>\n

\u201cThe story of the ISA millionaire is one that is heavily publicised and many have looked to these products as a way to build wealth. There\u2019s no denying that some have been successful in doing so, however, those with an eye on the long term simply won\u2019t see a substantial return based on their historic performance over the last 10 years.<\/p>\n

There really is no safer investment than UK bricks and mortar and the Buy-to-Let sector has outperformed both stocks and shares and cash ISAs quite considerably over the last decade.<\/p>\n

Of course, the government has done its best to dampen this return but even with changes to tax legislation and an increase in stamp duty costs, rental market investments continue to yield very strong returns.\u201d<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Table shows the average annual growth rate across each investment option and the 10 year return based on a
\nstarting investment of \u00a320,000<\/th>\n<\/tr>\n
Year<\/th>\nStocks and shares ISA (FTSE 100)<\/th>\nCash ISA<\/th>\nBTL investment – direct comparison<\/th>\n<\/tr>\n
Average annual growth rate<\/em><\/td>\n2.3%<\/td>\n-4.1%<\/td>\n4.3%<\/td>\n<\/tr>\n
0<\/td>\n\u00a320,000<\/td>\n\u00a320,000<\/td>\n\u00a320,000<\/td>\n<\/tr>\n
1<\/td>\n\u00a320,464<\/td>\n\u00a319,176<\/td>\n\u00a320,860<\/td>\n<\/tr>\n
2<\/td>\n\u00a320,939<\/td>\n\u00a318,386<\/td>\n\u00a321,757<\/td>\n<\/tr>\n
3<\/td>\n\u00a321,425<\/td>\n\u00a317,628<\/td>\n\u00a322,693<\/td>\n<\/tr>\n
4<\/td>\n\u00a321,922<\/td>\n\u00a316,902<\/td>\n\u00a323,668<\/td>\n<\/tr>\n
5<\/td>\n\u00a322,430<\/td>\n\u00a316,206<\/td>\n\u00a324,686<\/td>\n<\/tr>\n
6<\/td>\n\u00a322,951<\/td>\n\u00a315,538<\/td>\n\u00a325,748<\/td>\n<\/tr>\n
7<\/td>\n\u00a323,483<\/td>\n\u00a314,898<\/td>\n\u00a326,855<\/td>\n<\/tr>\n
8<\/td>\n\u00a324,028<\/td>\n\u00a314,284<\/td>\n\u00a328,009<\/td>\n<\/tr>\n
9<\/td>\n\u00a324,585<\/td>\n\u00a313,696<\/td>\n\u00a329,214<\/td>\n<\/tr>\n
10<\/td>\n\u00a325,156<\/td>\n\u00a313,131<\/td>\n\u00a330,470<\/td>\n<\/tr>\n
Return on Investment<\/th>\n\u00a35,156<\/th>\n-\u00a36,869<\/th>\n\u00a310,470<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Table shows the average annual growth rate across each investment option and the 10 year return based on a
\nstarting and ongoing annual investment of \u00a320,000<\/th>\n<\/tr>\n
Year<\/th>\nStocks and shares ISA (FTSE 100) – with \u00a320k investment each year<\/th>\nCash ISA – with \u00a320k investment each year<\/th>\nBTL investment – direct comparison with \u00a320k investment each year<\/th>\n<\/tr>\n
Average annual growth rate<\/em><\/td>\n2.3%<\/td>\n-4.1%<\/td>\n4.3%<\/td>\n<\/tr>\n
0<\/td>\n\u00a320,000<\/td>\n\u00a320,000<\/td>\n\u00a320,000<\/td>\n<\/tr>\n
1<\/td>\n\u00a340,464<\/td>\n\u00a339,176<\/td>\n\u00a340,860<\/td>\n<\/tr>\n
2<\/td>\n\u00a361,403<\/td>\n\u00a357,562<\/td>\n\u00a362,617<\/td>\n<\/tr>\n
3<\/td>\n\u00a382,827<\/td>\n\u00a375,190<\/td>\n\u00a385,310<\/td>\n<\/tr>\n
4<\/td>\n\u00a3104,749<\/td>\n\u00a392,093<\/td>\n\u00a3108,978<\/td>\n<\/tr>\n
5<\/td>\n\u00a3127,179<\/td>\n\u00a3108,298<\/td>\n\u00a3133,664<\/td>\n<\/tr>\n
6<\/td>\n\u00a3150,130<\/td>\n\u00a3123,836<\/td>\n\u00a3159,411<\/td>\n<\/tr>\n
7<\/td>\n\u00a3173,613<\/td>\n\u00a3138,734<\/td>\n\u00a3186,266<\/td>\n<\/tr>\n
8<\/td>\n\u00a3197,640<\/td>\n\u00a3153,019<\/td>\n\u00a3214,276<\/td>\n<\/tr>\n
9<\/td>\n\u00a3222,226<\/td>\n\u00a3166,714<\/td>\n\u00a3243,489<\/td>\n<\/tr>\n
10<\/td>\n\u00a3247,381<\/td>\n\u00a3179,846<\/td>\n\u00a3273,959<\/td>\n<\/tr>\n
Return on Investment<\/th>\n\u00a347,381<\/th>\n-\u00a320,154<\/th>\n\u00a373,959<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The latest market analysis by London lettings and estate agent, Benham and Reeves, has revealed that despite the government\u2019s best attempts to dampen Buy-to-Let profitability, you\u2019re far better off investing in bricks and mortar compared to chasing dreams of becoming an ISA millionaire. Benham and Reeves analysed data over the last 10 years looking at … <\/p>\n

Continue reading “Buy-to-let returns blow ISAs out of the water”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[464],"tags":[],"class_list":["post-740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/comments?post=740"}],"version-history":[{"count":6,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/740\/revisions"}],"predecessor-version":[{"id":1048,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/740\/revisions\/1048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media\/745"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media?parent=740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/categories?post=740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/tags?post=740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}