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Working with Investors

In the current financial climate, where deposit account savings offer extremely low-interest rates and stock markets are very volatile, property is often seen as a sound investment.

In the UK we have strict planning rules and a shortage of housing and an enduring factor in driving property ownership in the UK has been its value as an investment

“The wise young man or wage earner of today invests his money in real estate.”

      – Andrew Carnegie, Scottish business leader and philanthropist, 1835-1919

“Buy land, they’re not making it anymore.”   – Mark Twain, author, 1835-1910

We are delighted to work with investors who want to get a highly attractive return from investing in property but don’t have the time and knowledge to do it themselves, this information from the Nationwide shows why investing in property is viewed as a solid investment.
Rising house prices have enhanced the appeal of home-ownership and investment over the past half-century

UK average (nominal) house prices (£), 1952-2018

Source: Nationwide 26 February 2020

House prices and income

  • House prices have risen in the UK over the last half-century, though there are marked regional differences, and there have also been significant periods of flat or negative growth
  • UK house prices have grown faster than incomes: between 1997 and 2017 house prices rose 260% on average, while average income grew only 70%
  • In 1968 the average UK house price was £3,600; in 2019 it was £229,000. If grocery prices had increased at the same rate as house prices, a four-pint carton of milk would cost £10.45 today and a chicken £51.18
  • Rising house prices have a two-fold effect:
    • people want to buy before prices rise even higher.
    • property is likely to be a good long-term investment.
  • Home-ownership as an investment has been less volatile than the stock market and produced slightly higher returns
  • Property now represents over a third of personal wealth in the UK

 

A BBC report into housing also, published in February 2020 cited the following reasons for house price inflation.
Between 2006 and 2016 the UK population increased by 8% – the fastest 10-year growth for a century.UK has 140,000 families without a home.
There has been a significant increase in the number of households composed of single adults and couples without children over the last 20 years.
The increase in single-adult households has been driven not only by people living longer, but also by the growth in the number of single men aged 45-64 living alone. This may be explained by their having divorced, and their wives and children retaining the family home.
The effect of these long-term demographic changes has been to increase the number of households by 3.3 million in 20 years, and thus in the process to increase demand for housing.
People are living longer: the proportion of the UK population aged 75 and over is projected to increase from 8% to 13% over the next 25 years. Many older people are likely, at some point, to be living alone
Based on the current shortfall in specialist housing and population projections, information service Housing LIN estimates a shortfall of 400,000 units of specialist housing for older people by 2035.

Fab-Group Ltd

Email: team@fab-group.co.uk
Phone: 01227 656131
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