House prices vs the stock market, which is the better investment? [Video]

The idea that property is a very sound investment is deeply embedded in the British psyche. In this video episode of The Investment Program we look at whether this is true.

Many choose to invest their money in bricks and mortar rather than the stock market; Whether this is an investment in your own home, a second home, or buying to rent.

So is this belief wrong? Duncan Lamont, head of strategic research at Schroders, decided to take a hard look at the numbers after being shocked by a conversation with a friend who said they were selling a flat they bought in 2016 for less than they paid for it.

Duncan joins Simon Lambert to tell us what his deep dive uncovered. It explains what has happened to the property market, global US and UK stock markets over the past five and 20 years, and how returns compare with previous years. inflation – and what happens if you use your pension to invest?

The chart below shows how the global stock market has comfortably beaten the property market and inflation over the last five years; Duncan explains how extending the term to 20 years changes the picture. And why does he still think it’s a good idea to buy his own house?