The other bricks and mortar
It is not only residential property that is rising in value.
The UK’s fixation with house prices is once again to the fore, with a relentless stream of press comment and increasing regulatory activity aimed at preventing a housing bubble. Much less attention has been paid to the commercial property market, which is also enjoying a strong revival.
The recession hit commercial property values hard, with a decline from the 2007 peak to the 2009 trough of 44%. However, since May 2013, commercial property values have risen each month, bringing total growth by June 2014 to 10.1%, according to Investment Property Databank (IPD). Prices are "still well below the peak levels of 2007" the IPD says, which means rental yields remain close to 7%. It is therefore no real surprise that in May, commercial property was the most popular fund sector for individual investors.
The value of your investment and the income from it can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investment in property should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.