New research from the Office for National Statistics (ONS) has shown Brits’ belief that property will continue to offer the best returns for those saving towards their future retirement.
According to the Wealth and Assets Survey by the ONS, 49 per cent of respondents said that investment in property will help them to achieve the best returns over the longer term, helping to set them up more securely in their retirement.
It marks the fifth year in a row that property has come out on top in the survey, beating other ways to save including employer pensions, stocks and shares, ISAs, savings accounts and personal pensions.
Overall, the report showed that with the ongoing low level of interest being offered on the majority of savings vehicles for people across the UK, property remains a highly attractive option for those who are able to invest in this type of asset.
UK House Prices Continue to Rise
The latest Land Registry data shows that property values across the UK continue to rise in the current financial climate – up by 0.1 per cent month-on-month in November 2017 to an average of £226,071 and representing an annual increase of 5.1 per cent.
Recent decades have been an enormously lucrative period for investors in UK property and, while a lull in upward momentum was witnessed in the wake of the financial downturn, there remains considerable scope for future growth given the market’s ongoing recovery.
Positive market forces including rising demand for homes, the redevelopment of major cities across the whole of the nation and the invigorating economic impact of initiatives like the Northern Powerhouse mean property values could still rise further in the years ahead.
It is a view supported by David Miles, professor of economics at Imperial College and a former member of the Bank of England’s Monetary Policy Committee, who told the FT that “under plausible assumptions” UK house price growth could continue to outpace wage increases for the foreseeable future.
Individuals keen to make the most of their capital investments in the coming years could therefore be making all the right moves when channelling their funds into the UK property market.