This article was originally published in March 2019.
Over almost 30 years UK house price gains have outperformed the best of British businesses. What next?
Index performance rebased to 100 in January 1990 %
What’s your biggest financial asset? For most Britons, it’s their home.
2.5 million Britons have doubled down on property and become buy-to-let landlords. Property is a national pastime, as 900 episodes of Homes Under the Hammer testify.
In recent decades – it’s been a great investment. In fact, UK residential property has outperformed UK equities since 1990.
House prices have risen about 4% per annum for 30 years and investors received another 5% or so in rental yield/implied rent. 9-10% total return is very nice indeed. In London the returns have been far greater. But will the future resemble the past?