The case for investing in the sector is backed by:
- A long-standing supply/demand imbalance in the housing market
- Attractive rental growth prospects, particularly in London
- Low correlations with commercial real estate, equities and bonds
- Defensive characteristics with improved capital preservation
- Scope for professional investors to add value through active management and economies of scale
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.