Mortgage brokers are saying people will benefit further by investing in property rather than in shares over the next five years but only just.
The survey by UCB Home Loans says of 523 brokers, 55 per cent thought property would give them higher returns, whilst 45 per cent preferred shares.
According to Nationwide, the FTSE 100 grew by 16 per cent in 2005, compared to housing market growth of 3 per cent. However, the FTSE still remains 10 per cent below its 1999 level, whereas house prices are more than twice as high as they were at the end of 1999.
UCB Home Loans managing director Keith Astill says: We are expecting a drop in interest rates some time in early 2006, with house price rises remaining in the 0 per cent to 3 per cent range over the year.
The longer-term picture on prices is less clear, but the research shows that brokers are obviously expecting property to outperform equities over the next five years.