How BTL compares to other investable assets over the past 12 months

As an investment vehicle, BTL properties have long been held in the highest of regard. However, in recent years, regulatory and tax changes have served to challenge profit margins and investment potential with all landlords having to evaluate individual properties within their portfolio and adapt/diversify if necessary.

With this in mind, it was interesting to come across new research which looked at the returns seen across 12 investable assets in the last year to reveal where money has been best placed in the current climate.

It has obviously been a bumper year for the UK property market, with house prices rising across the board. The average UK homeowner is suggested to have experienced a gain in capital to the tune of 9.3% in the last year alone. So how does this compare to other investable assets?

According to the research from Stripe Property Group, this places bricks and mortar fourth in the list of best investments, beating rare whisky, rare coins, designer handbags, classic cars, jewellery, antique furniture and gold. In fact, gold is the only investment class to have seen a decrease, down -1% annually. Only fine wines (16%), designer watches (16%) and fine art (13%) have yielded a greater return when it comes to the increase in value

The London market hasn’t benefited to the same degree as the wider UK with London property values up by just 4.2% annually. Despite this, the capital’s housing market has still proved a better investment than classic cars, jewellery, antique furniture and gold.

It’s tough to predict exactly how average house prices will fair over the rest of 2022, but with landlords continuing to maintain a longer-term view and achieving strong rental yields alongside these significant levels of capital appreciation, then it’s little wonder that we are experiencing sustained activity across the BTL market. This is especially apparent amongst professional landlords and we don’t expect these activity levels to slow anytime soon.