London property beats most investments in 10-year returns, Foxtons says

London property beats most investments in 10-year returns, Foxtons says

8:52 AM, 23rd February 2024, About 10 months ago

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Foxtons has revealed that the capital’s residential property market has delivered one of the best returns over the last 10 years, second only to Bitcoin and gold.

The lettings and estate agents compared the performance of London property with nine other common investment choices, ranging from wheat to crude oil, and natural gas to the FTSE 100.

Foxtons, which was established more than 40 years ago, has a deep understanding of the London property market, having witnessed how it has evolved over the years.

‘Investment landscape is constantly changing’

The firm’s chief executive, Guy Gittins, said: “The investment landscape is constantly changing and while some traditional vehicles have seen a sharp decline in value over the last decade, such as natural gas, other emerging markets such as cryptocurrency have experienced a boom period, albeit with a heightened degree of volatility.

“However, it’s fair to say that bricks and mortar has remained one of the most consistent investments one can make down the years and the long-term returns speak for themselves.”

He added: “The London market is undoubtedly the pinnacle when it comes to UK property investment and while the last year may have been a challenging one, the value of a London home has still climbed considerably over the last decade.”

Average value of a London home has risen by 44.3%

Based on the latest sold price data from the Land Registry, the average value of a London home has risen by 44.3% over the last decade.

In December 2013, the average London home cost £352,028, but today it is worth £508,037 – an increase of more than £156,000.

Of all the investment assets analysed by Foxtons, only two have seen a higher return on investment over the same period.

Bitcoin tops the list having grown by 4,963%, while the price of gold has increased by 66.8% in the last 10 years.

In the last decade, silver has grown by just 22.9% in value, while investing in the FSTE 100 would have yielded a return of 15.7%, with corn rising in value by 7.9%.

Wheat, on the other hand, has dropped by -2.5% in values, with WTI Crude Oil (-26.3%), Brent Crude Oil (-30.2%) and natural gas (-41.5%) also losing value.


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