Past performance is not a reliable indicator of future results.
Past patterns vs present performance
In earlier years, property price growth often outpaced movements in the FTSE 100. For instance, house prices rose by 10.8% in 2021, compared with a 9.6% rise in the index that year. Yet recent data suggests that equities have since narrowed the gap – and, in many cases, surpassed property performance overall.
This year, the FTSE 100’s performance was driven by sector resilience across energy, finance and consumer goods, helping to offset volatility in global technology stocks.
Meanwhile, property growth has been measured, as both buyers and sellers remain cautious ahead of fiscal policy updates expected later in 2025.
Past performance is not a reliable indicator of future results.
Pros and cons of property and stocks
Property and equities each have distinct advantages and potential risks.
Property values may appear stable, but they’re not immune to downturns, as seen during past market corrections. Property purchases also involve upfront costs such as deposits, legal fees and taxes, which can make them less accessible than shares or funds.
By comparison, trading or investing in equities offers greater flexibility and liquidity – positions can be opened or closed within moments rather than weeks. Dividends may also contribute to total returns over time, particularly when reinvested.
Both markets are influenced by policy decisions and global developments, meaning that short-term fluctuations should not be mistaken for long-term performance trends.
Exposure to property through the markets
For those seeking indirect exposure to property, listed property companies and Real Estate Investment Trusts (REITs) can provide access to the sector without owning physical assets.
The UK REIT market includes a broad range of firms across commercial and residential property, and these shares often reflect wider property trends while benefiting from the liquidity of stock trading.
In 2025, property-related funds have generally underperformed the broader FTSE 100, though rental income has offered stability for those focused on yield.
Balancing exposure
There’s no rule that investors must choose between property and equities. Each asset type can serve a different purpose within a diversified portfolio. Property may offer potential income and long-term stability, while equities can provide access to global growth and greater flexibility.
As of 6 November 2025, the UK stock market continues to outperform property in total returns, with the FTSE 100 up 17.5% year to date compared with modest house price growth. However, property remains resilient, supported by sustained rental demand and cautious optimism among buyers and sellers.
Both asset classes have their potential opportunities and risks – and understanding their different risk and return profiles can help individuals make better-informed financial decisions.
Past performance is not a reliable indicator of future results.