There are many reasons why property represents such a good investment, lets first look at the facts:
The Facts
People will always speculate but the facts speak for themselves.
Since 1948 property in the UK has risen on average 8.5% year on year.
Since 1962 the office of national statistics have recorded that rents have risen on average by 13% per annum.
On average, UK property prices more than double every decade.
Over the last fifty years, UK property has only gone down twice in real terms 1971-73, and 1989-92. Five years out of fifty.
Since 1956 the compounded average annual increase in house prices has been 8.5%. To put this into perspective, a house bought in London 50 years ago for £1000 would today be worth more than £1 million.
Inflation in the last 50 years has been 1,689%. The stock market has grown by 2,700%, but UK house prices have increased by 22,000%.
More millionaires have been made from the property market than through any other investment vehicle. A property bought for £35,000 in 1983, would today be worth about £200,000, an increase of over 571%.
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Other things to bear in mind
Demand for new housing is outstripping supply and there is a current shortage of 4 million homes in the UK. With the population expected to rise by 10% by 2030 and council restrictions on new developments, theres no way the supply can meet the demand.
The number of required households is dramatically increasing as a result of the following:
Higher divorce rate
Longer life span
Immigration
Increase in the student population
Change in social attitudes i.e. buying prior to marriage
(See below) |
