Context
Buy-to-let vs other investments
Property can work brilliantly — but it's a business, not a passive investment. Here's how it stacks up.
| Buy-to-Let | S&P 500 index | Pension (SIPP) | Cash ISA | |
|---|---|---|---|---|
| Liquidity | Low — months to sell | High — days | Locked until 57 | High |
| Leverage | Yes — 75% LTV mortgage | None (typically) | None | None |
| Time required | High — tenants, repairs, compliance | Minimal | Minimal | None |
| Tax complexity | High — S24, SDLT, CGT, MTD | Low in ISA; CGT outside | Low — tax relief in, taxed out | None — tax-free |
| Regulation risk | High — Renters' Rights Act, EPC | Low | Medium — rule changes | Low |
| Typical returns | Yield 4–7% + growth, leveraged | ~10% long-run nominal, volatile | Market returns + 20–45% relief | ~3–4.5%, below inflation risk |
Past performance is not a guide to future returns. Figures are illustrative ranges, not forecasts. Not financial advice.