Property makes more money than shares over the past 10 years

Property makes more money than shares over the past 10 years

The number of people investing in property looks set to increase after latest research reveals it’s the most lucrative investment.

Summary

  • Property named as most lucrative form of investment
  • Property investment generated a 175% return over the last decade
  • Growing build-to-rent sector expected to attract even more investors in 2017

 

It’s official, property has been named as the most lucrative form of investment in the UK over the last decade, delivering significantly larger returns than leading alternative options including gold, savings accounts, stocks and shares.

Research carried out by estate agents Leaders and Romans reveals the property market generated a 175% return over the last decade, equating to an average profit of £138,936.

Based on an initial 2006 investment of £50,000, Leaders and Romans compared property returns against three other major investment sectors; gold, stock and savings. The results show property returned £135,000 more profit than stocks and £90,000 more than gold, which delivered returns of £50,673, while savings generated £14,447 worth of interest.

Michael Cooks, Letting Managing Director at Romans, commented: “Buy-to-let performs significantly better than other investments in terms of overall return.” While Allison Thompson, Managing Director at Leaders, added: “Despite many changes over the last ten years to the housing market and wider economy, property is still the clear winner.”

In addition to delivering the highest returns, investors value the immediate monthly rental income property investment offers in addition to capital appreciation over time.  Despite the cyclical nature of the market, house prices always rise in the long run, offering investors more security than other forms of investment.

As a result, property continues to be an incredibly popular option with investors, despite being more time-consuming and hands-on than other forms of investment which offer greater liquidity.

With the current acute shortage of housing across the UK, investment in property only looks set to increase. The rapidly growing build-to-rent sector is expected to further contribute to a rise in property investment popularity, which sees a move away from the traditional hands-on form of letting to instead offer investors a fully managed alternative.

With an increasing number of build-to-rent developments underway, including Select Property’s own Affinity Living, 2017 should see a number of investors move away from traditional forms of letting towards this growing sector and new concept of letting.

 

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