‘As safe as houses.’
Property is the go to asset class for wealthy people across the world to preserve, grow and compound their wealth. It is considered to be a safe and secure investment. This is because historically, even if houses prices dip in the short term, the medium-long term trend is for the value to go up.
Over the last 80 years, property values have increased in the UK every 7.9% per annum, which means they have doubled every 9 years (Land Registry data).
Even from 2000-2010, the decade in which we saw the biggest financial crisis in recent history, house prices increased every single year except 2008 & 2009 (total drop 8.4%), and over the decade they still doubled.
Land and property is a limited resource, and populations are growing faster than the number of houses being built. The government forecasts say property values will continue to rise in line with historical trends. It’s simple laws of demand and supply.