Why Property Remains a Good Retirement Bet

The Bank of England’s Chief Economist caused a blaze of headlines this past week. Despite his own teflon-plated pension, he had the following words of wisdom about the best laid plans for retirement:

“It ought to be one’s pension, but it’s almost certainly property. As long as we continue not to build anything like as many houses in this country as we need to – we will see more of the same of what we’ve experienced for the better part of a generation – which is house prices relentlessly heading north.”

Contrary to popular belief, property is not a one-way bet – and while the laws of supply and demand should find equilibrium in the long-term, for the time being, ebb and flow uncertainty remains. That said, the latest industry data suggests a certain optimism in the market, with prices up in July and August according to high street banks. Add to this the fact that residential property produces a net income at 10-20 times the Bank of England base rate, and it’s perhaps of little surprise that for many investors, property remains one of the most attractive investments one can make.