For the first time in a year, equity investments have performed better than property investments.
According to the Investment Property Databank UK Monthly Index, during the month of June property rose by 1.7% but equities rose by 3.4%.
Our View
This is a very short time period that coincides with a large rise in equity investments. We believe that a balance of equity and property investment, together with investments in other areas will spread the risk for investors and bring solid returns over the medium to longer term.
Commercial property is still especially desirable and demand is currently outstripping supply, hence prices and rental yields rising.
Investors should not leave the property market in favour of equities, but should balance their investments.