In September 1996, buy-to-let mortgages became available for the first time, making it possible for ordinary people to secure this kind of finance and to go on to build long-term portfolios.

This initiative has substantially supported the growth of the private rented sector, which caters for 4.7 million households in England, more than double the number that relied on such accommodation in 1996.

Our research shows that these loans have been wealth-creation engines, making buy-to-let one of the top-performing investments in modern British history.

Despite recent challenges in the shape of regulation and taxation, returns from buy-to-let have still rivalled, or even exceeded, those from other high-flying global assets. Each £1 invested in buy-to-let in 1996 is worth £22.30 today, which represents a 2,130% total return over the 30-year period. The 422% rise in house prices between 1996 and 2026, according to data from the Office for National Statistics (ONS), accounts for 38% of this bumper gain. The remainder - 62% - comes from rental income.

Over the same 30-year period, the leading US S&P 500 stock market index has delivered a return of 2,105%, turning £1 into £22.05.

Since 1996, the UK blue-chip FTSE 100 index has returned 796%, with each £1 staked now being worth £8.96. Gold has been somewhat lacklustre, with a 636% return, meaning that each £1 invested in the metal has grown to only £7.36.

Over the past five years, however, stocks may have outpaced buy-to-let. The S&P index has increased by 75%, compared with 41% cumulative returns for buy-to-let. But property's long-term track record remains robust.

One of the most notable changes in buy-to-let since the outset has been the age of investors. In 1996, the typical investors were people in their thirties, building a property portfolio alongside their day jobs. Today, such landlords are rare among new borrowers, with the sector being dominated by older first-time investors who regard buy-to-let as their main activity and source of earnings. A recognisable shift towards professionalism.

There is now one buy-to-let purchase for every 5.3 first-time buyer purchases.

The 37-year-old who embarked on a buy-to-let investment in 1996 was seeking to put together a long-term capital pot. The average property cost £54,900 and the average buy-to-let mortgage rate was 7.76%. Although this was higher than the typical rate, most investors opted for repayment loans, keen to pay down debt.

It was a strategy that paid off, thanks to a doubling in house prices between 1996 and 2002, which meant their loan-to-value (LTV) ratios more than halved in just six years. The equity they amassed enabled them to acquire more properties in subsequent years.

These early investments have further increased in value, becoming assets that are likely to be passed on to the next generation.

Today's investor is embarking on buy-to-let at a time of higher taxation, a great deal more regulation and stricter lending criteria. The average buy-to-let property costs £360,600. Almost all - 99% - of landlords are opting for fixed-rate loans, which were the choice of just 22% of buy-to-let borrowers in 1996. As many as 70% prefer interest-only loans. The typical mortgage rate is 4.52%.

Interestingly, our analysis finds that there is now one buy-to-let purchase for every 5.3 first-time buyer purchases. But when buy-to-let returns were easier to come by in 2004, this figure stood at just 1.1.

While the backdrop to buy-to-let may look very different today, the motivation behind it has changed less. For many landlords, it remains a long-term business built around bricks and mortar; an asset to hold, grow and, in time, pass on, rather than one to sell in response to every shift in tax or regulation.

*Methodology

Returns across all asset classes have been compounded, with dividend and net rental income reinvested annually. Landlord returns are based on buying the average property, with the value of that home tracking average UK house price growth. We deducted 31% of gross rental income for running costs and fees, a figure based on the averages quoted by HMRC. Returns across all asset classes are quoted pre-tax. To make a fair comparison between asset classes, we have assumed cash outright ownership; the use of leverage in buy-to-let would amplify the returns on offer.