It’s not hard to see why investing in the UK property market might seem so attractive.
Over the past two decades, average house prices have almost quadrupled. This capital growth has made UK homes an enormous store of wealth, with an estimated total value of £7.1 trillion, as of January 2018.
Given their relatively high cost, homes are often households’ most valuable asset. Understandably, property ‘nest eggs’ are central to most people’s long-term financial plans – in many cases more so than pensions and other savings or investments.
However, over-relying on any single asset, even a property, to pay for your future carries risks. Bricks and mortar might have delivered stellar capital growth recently, but house prices can go down as well as up.