House Prices for Investors and the Queen reign supreme
posted: July 4th, 2012
As we all know, it was the Queens diamond jubilee last month, what you may not know, is that house prices are now 86 times higher than when Queen Elizabeth ll first came to the throne in 1952. Platinum Portfolio Builder looks at how housing has changed in this time…
Recent research carried out by HSBC has looked at how house prices have changed over the past 60 years under the monarch. At the start of the Queens reign the average home cost £10,891 compared to £162,722 today. In comparison to this, retail prices have risen by a multiple of 25 over the same period. HSBC suggests this means that for most people buying a home many years ago, it has been a very good investment even after stripping out the effects of inflation.
This long term capital growth on property is primarily what Platinum Portfolio Builder investors base their investment strategy around, and with PPB portfolio properties purchased at an average of 26% BMV the portfolios begin to grow with instant equity attached.
The number of houses in the UK has nearly doubled (14.1 million in 1952 compared to 27.3 million today) in the last 60 years. However the number of new homes been built each year has fallen by 46% during the same time period: 248,320 to 133,840 in the latest estimate. This gives Platinum Portfolio Builder investors the chance to benefit from the already significantly high rental demand with fewer houses for tenants to compete for – an environment perfectly set for a buy-to-let investment opportunity to receive an additional monthly income from rent.
Data on regional house prices is not available from as far back as 1952, so instead HSBC has examined house price growth since the Queens silver jubilee. The most drastic increase in the past 35 years an increase of 1,782% from £15,593 to £293,375 compared to the more humble purchase price of £12,805 to £132,128 a rise of 932%. This reduced purchase price is still existent today with the North of England seeing higher performing yields compared to the South of England for property investments according to Paragon’s annual rental yield table.
Nick Carlile, founder of Platinum Portfolio Builder, has been investing in the north of England for many years as the purchase price against rental yield ensures the numbers stack up. Together, with PPB’s investors hundreds of properties have been bought and tenanted for rental income and future capital growth potential.
It is not known who will reign in the next 10 or 20 years, but we do know that the environment and on-going trends in property investment make which one PPB Investor deems as “no brainer” to invest in the future.
To find out more about how Platinum Portfolio Builder can deliver market leading returns on a totally passive investment opportunity call 01226 732606 or visit www.platinumportfoliobuilder.co.uk where you will be able to request a copy of the brand new free 2012 Guide to Investing in Property and also pre-register for one of the first copies of Your Property Pension, due to hit the bookshops and Kindle this summer.

