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?