Property investment on the up
The research, conducted on behalf of B&Q, supported the findings of the Turner report, which indicated ‘savings through house purchase and inheritance of housing assets will make a significant contribution to pension adequacy for many people.”
It revealed non-financial assets reached £4,282 billion in 2006, a rise from £1,694 in 1996, with residential buildings accounting for 84.1 per cent of tangible assets.
With slow growth in non-financial assets, Warren Scarr, director of customer insight at B&Q, said property was a good potential source of income into retirement and a sound investment choice for a growing number of people. He said: “With house prices steadily rising by 270 per cent in the last decade, compared to a more volatile stock market, homeowners in the UK are increasingly recognising the value of property as a stable investment. B&Q recognises that an Englishman’s home really is his castle and that maintaining your housing assets can play an important role in providing resources to support your retirement.”
Bill Warren, director of Complete Mortgage and Loans Services, was unsurprised by the findings, and argued the buy-to-let (BTL) market was already geared up for future growth. He said: “There has been a definite increase in people investing in property. What you might call amateur investors have gone mad into the BTL market and this shows no signs of abating. I can understand the logic and this is supported by continued growth in the sector.
“What is a little surprising here is that first-time buy-to-let investors have not aggressively gone after the second or third property – they have just been happy to have a single property which they can then utilise for investment purposes.”