Is there a better long term investment than property in the UK?

Shawbrook Bank published an interesting paper this week entitled The Changing Face of Buy to Let.

They reported that the Private Rental Sector in the UK had grown by 5.8% this year to over £1.4 trillion. Buy to Let properties have obviously grown in value in line with the property market in general (a 9.9% year on year increase in March.)

As property profes]sionals, we should advise our customers eloquently on the benefits of investing in property. We should also be able to compare this opportunity with other options. So here are some simple thoughts:

Interest rates have been at historic low levels for over a decade with little sign of dramatic change. (I’m currently getting 0.1% interest on my cash.)

On the 3rd of April 2000, the FTSE stood at 6977. Twenty-one years later, at close of business yesterday, it reached 7148. A 2.4% increase over 21 years.

In many parts of the country, house prices have more than doubled over the same period.

Indeed, the tax environment for buy to let is not as favourable as it was 10 years ago, but if investors buy well and employ a highquality agent (you), they will make a monthly profit to add to their capital growth.

Is there a better long term investment than property in the UK? I don’t think there is. The Millionaire Real Estate Investor (the blue book) is well worth a read, by the way!

Paul Sloan
Operations Director, KWUK

paul.sloan@kwuk.com