Buy-to-let (BTL) investments have, on average, outperformed stock market investments over the past 30 years, according to new research from estate agency Hamptons. Since BTL mortgages were introduced in 1996, landlords have seen average returns of 2,130%, meaning an initial £1 investment is now worth £22.30.
This compares to a 2,105% return for the S&P 500 over the same period, where £1 invested in September 1996 would now be worth £22.05, assuming dividends were reinvested. The FTSE 100, however, has returned 796% since 1996, making a £1 investment worth £8.96.
Despite this long-term trend, the past five years show a different picture. Cumulative returns for residential buy-to-let have been 41%, while the S&P 500 achieved 75% and the FTSE 100 73%. This suggests that being a landlord has become less profitable recently, particularly for new investors.
Aneisha Beveridge, head of research at Hamptons, noted that few anticipated buy-to-let would become a significant wealth-creation engine when it launched. Jessica Sheldon, MoneyWeek's deputy digital editor, highlighted that landlords must consider additional expenses like maintenance and potential periods of no rental income, alongside increased regulatory burdens from the Renters’ Rights Act which came into force in May 2026.