Onside Issue 2 - Winter 2014 - 23

ONSIDE / PROPERTY Q&A

Q: Has residential property remained an
attractive asset class despite all the bad press
and talk of bubbles?
A: Yes, very much so. The residential market has shown the
best long-term performance of all the UK's main asset classes.
The residential property market has shown strong historical
performance and low volatility. Investors remain challenged by
a lack of attractive alternative investment opportunities with
a similar risk and return potential.

Q: What's happened to the housing market over
the last cycle?
A: There is no doubt the housing market got overheated in the
last boom and house prices were at an unsustainable level, driven
up by the availability of cheap money and 110% mortgages.
So it wasn't surprising that when the banking crisis happened,
house prices fell. Unique to this trend was London where there
has been significant house price inflation whilst the rest of the
country is only just starting to see a recovery in house prices.

Q: If London is where all the action is why not
start a residential fund investing there?
A: The London housing market has seen significant house price
growth over the last few years however on a normal valuation
basis such as house price to income ratios, the market looks
overvalued and there are signs that this market is slowing.
The London market is very difficult to value as it has been driven
by overseas buyers who see London property as a safe haven.
We believe at this time there are better opportunities to invest
in the regions where there has been limited house price growth
and there are strong fundamentals to drive future growth.

« We believe at this time there are better opportunities to invest in the
regions where there has been limited house price growth and there are strong
fundamentals to drive future growth. »

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Table of Contents for the Digital Edition of Onside Issue 2 - Winter 2014

Contents
Onside Issue 2 - Winter 2014 - Cover1
Onside Issue 2 - Winter 2014 - Cover2
Onside Issue 2 - Winter 2014 - Contents
Onside Issue 2 - Winter 2014 - 4
Onside Issue 2 - Winter 2014 - 5
Onside Issue 2 - Winter 2014 - 6
Onside Issue 2 - Winter 2014 - 7
Onside Issue 2 - Winter 2014 - 8
Onside Issue 2 - Winter 2014 - 9
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Onside Issue 2 - Winter 2014 - Cover4
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