Residential property investment
UK residential property has been the best performing asset class in the last 50 years according to the Barclays Capital Equity Guilt Study & ODPM housing statistics. These figures showed that in real terms (after inflation) £100 invested in a portfolio of shares in 1930 would have grown to a little over £363 by the end of 2004 compared with £767 if that same amount had been invested in residential property.
Despite this, it has been very difficult to invest indirectly in the residential property market.
Why have investment funds not invested in residential property if the returns are so good?
There are a number of reasons why professional investment funds have stayed away from direct investment in residential property. Firstly, the whole area of private landlordism has been a real ‘political hot potato’ up until the last 10 years. Housing was seen by some members of the political classes as something not to be profited from, like the NHS. The very…