At present there is a sharp difference of opinion on the future direction of UK property prices. In one corner, a handful of vociferous media pundits are calling for an eminent correction. Whilst in the other, many expert fund managers are ploughing literally £billions of fresh money into this resilient sector. You can see why, too. According to 4 esteemed economists (Jorda, Knoll, Kuvshinov, Schularick, and Taylor), UK housing delivered average real returns (net inflation) of 5.6% p.a. between 1870-2015 and 6.8% since 1980 – split roughly 60:40 capital:rental – vs 2.8% and 4.7% pa respectively for bonds. Better still, when included within a basket of 16 major OECD countries, residential property has also been considerably more stable than equities. Never failing to increase in value over a 5-year period, and generating the highest risk-weighted gains of any asset class.
05 Apr 2018
On track for another record year
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On track for another record year
Watkin Jones Plc (WJG:LON) | 40.2 0.1 0.5% | Mkt Cap: 103.3m
- Published:
05 Apr 2018 -
Author:
Paul Hill -
Pages:
7
At present there is a sharp difference of opinion on the future direction of UK property prices. In one corner, a handful of vociferous media pundits are calling for an eminent correction. Whilst in the other, many expert fund managers are ploughing literally £billions of fresh money into this resilient sector. You can see why, too. According to 4 esteemed economists (Jorda, Knoll, Kuvshinov, Schularick, and Taylor), UK housing delivered average real returns (net inflation) of 5.6% p.a. between 1870-2015 and 6.8% since 1980 – split roughly 60:40 capital:rental – vs 2.8% and 4.7% pa respectively for bonds. Better still, when included within a basket of 16 major OECD countries, residential property has also been considerably more stable than equities. Never failing to increase in value over a 5-year period, and generating the highest risk-weighted gains of any asset class.