Lowest volatility of all asset classes over the long term
Investor interest remains robust despite market challenges.

Hedge against inflation
Research (Demary & Voigtanger - 2009)has shown that direct investment acts as a hedge against inflation. This is partly due to the ability for landlords to make adjustments to rents and therefore the income generated from the investment to keep in line or ahead of inflation. Unlike, for example, commercial property, residential tenancy contracts typically run for between 6-12 months opposed to 5-20 years. Click here to download research

Chronic supply/demand imbalance
The UK has a chronic shortage of residential property. In 2010 the UK delivered the lowest number of new homes since peacetime 1923. The government has pledged to deliver 170,000 over the next four years, which still falls short of requirements as The National Housing Federation has warned of a ‘chronic under-supply of new homes’.

Finite resource - Prime Central London
A combination of current planning regulations and lack of development land has contributed to the continuing lack of supply. This is especially true in Prime Central and South West London where most brown fields sites have been developed making the supply issue critical.

Tangible
Direct property has an intrinsic value through the ownership of the property or the land on which it sits. Investing in direct property in which value can be added through refurbishment and redevelopment can enhance the capital value and increase rental returns.