A look at the long term
Since 1969, residential property prices in London have risen by over 50 times. Capital values have doubled every 5 to 10 years, an average of six times over this period. Taking net rental income into account, the sum invested could have increased by almost 60 times.
This greatly exceeds the capital growth in the UK stock market (measured by the FTSE 100) and commercial property, which has enjoyed huge popularity as an asset class. Capital growth, implicitly an invaluable constituent for an investor, has seen just a five fold rise in commercial property over this period.
London residential property has proved a safe and competitive long-term investment.
