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Brokers tip property over shares

Britons would be better advised to invest in property than shares over the next five years, according to a recent survey of UCB Home Loans brokers.

523 mortgage brokers were surveyed by UCB Home Loans, a subsidiary of the Nationwide building society.  The results showed that 55 per cent of respondents considered buying property to be more profitable than investing in equities.

This is despite the fact that the Nationwide's own figures suggest that the FTSE 100 share price index grew by 16 percent at the end of last month in comparison to the housing market's three per cent growth over the same period.

UCB Home Loans managing director Keith Astill said that this was an exception, not the rule.

He explained: "Last year was the first year this century that growth in the equity market has outperformed the housing market and it was also the first time in five years that annual house price inflation has been in single digits at the end of the year."

He went on: "The longer-term picture on prices is less clear, but the research shows that brokers are obviously expecting property to outperform equities over the next five years.

This prediction is reinforced by the fact that whilst the FTSE 100 is only ten per cent above its 1999 level, house prices have more than doubled over the same period.

"Nationwide's December housing review showed that the average UK house price currently stands at £157,250 and the average price for first time buyers is £128,105.  Fifteen years ago, the average UK house price was just £54,313 some £102,937 lower than it is today", said Astill.