Post by james on Jun 25, 2016 17:54:16 GMT
Dear Saving Stream Team,
Safety factor of investment in property – property has long been a safe haven for UK investors during periods of uncertainty. UK house prices grew considerably faster than UK equities during the last recession.Which recession do you mean and what are the index values for the relevant times from say the Land Registry and your chosen UK equity index for the period?
There are several possible candidates, for example 2012 which turned out not to be a real recession but just a data blip, or the one from Q2 2008 through Q2 2009 that was the first to come to my mind and which appears to be the most recent according to the BBC's economy tracker. But you can't mean that one because housing prices dropped by 13% during it.
Using the 2008-2009 recession as an example, you might use the UK Land Registry data which gives an index value of 96.06 for April 2008, 96.64 for May 2008 and 83.69 for June 2009. 83.69 is 87.1% of 96.06. For example, you might use the UK FTSE 100 index as reported by Yahoo which gives a value of 6087.30 at close on 26 May 2008 and 4417.90 at close on 29 May 2009. 4417.90 is 72.6% of 6087.30 but not that this is not a total return index, so excludes the value of dividends.
There are several possible candidates, for example 2012 which turned out not to be a real recession but just a data blip, or the one from Q2 2008 through Q2 2009 that was the first to come to my mind and which appears to be the most recent according to the BBC's economy tracker. But you can't mean that one because housing prices dropped by 13% during it.
Using the 2008-2009 recession as an example, you might use the UK Land Registry data which gives an index value of 96.06 for April 2008, 96.64 for May 2008 and 83.69 for June 2009. 83.69 is 87.1% of 96.06. For example, you might use the UK FTSE 100 index as reported by Yahoo which gives a value of 6087.30 at close on 26 May 2008 and 4417.90 at close on 29 May 2009. 4417.90 is 72.6% of 6087.30 but not that this is not a total return index, so excludes the value of dividends.
