From MoneyWeek · · 1m
Buy-to-let vs stock market: Which gives better growth?
30 years of buy-to-let outperformed S&P 500 but recent trends favor stocks
In brief
30 years of buy-to-let outperformed S&P 500 but recent trends favor stocks Landlords earned 2,130% growth over 30 years but now face slower returns and higher costs Originally reported by MoneyWeek.
Buy-to-let history
Buy-to-let mortgages launched in 1996 when average homes cost £54,900.
Past returns
Landlords earned 2,130% growth over 30 years, making £1 invested worth £22.30.
Stock market comparison
S&P 500 grew 2,105% over 30 years, but FTSE 100 grew only 796%.
Gold comparison
Gold grew 796% over 30 years, but buy-to-let grew 2,130%.
Recent shift
Over last five years, buy-to-let grew 41% versus 75% for S&P 500.
Regulatory changes
Renters' Rights Act gives tenants stronger powers since 2026.
Workload impact
Landlords handle repairs, tenant issues, and empty periods without help.
“Jessica Sheldon said: 'When choosing between buy-to-let or stock market, factor in other expenses.'”
Current trade-off
Stock market offers faster growth but requires less time and effort.
The big picture
Landlords earned 2,130% growth over 30 years but now face slower returns and higher costs
