Property is a tangible asset that gives people control over their future. Historically, residential property has doubled in price every 7 years and should therefore be viewed as at least a medium-term if not long-term investment. Although there will inevitably be short term fluctuations in market prices, property has always provided a consistent long term store of value for anyone who owns it.

There are a number of different reasons why residential values have seen such strong growth, but most of them come back to the simple economic principle of supply and demand - there is an overall shortage of suitable housing in most parts of the United Kingdom.

This housing shortage has been caused by a number of social and demographic factors, including:

House building at its lowest level since 1924, as the gap between supply and demand widens by 60,000 each year.

An average of 220,000 extra households created each year through longer life span, increased solo living (whether from choice or an increasing divorce rate), and an increasing number of students in higher education away from the parental home.

Population growth resulting from immigration into the UK.

In contrast, the past 5 years have seen shares and pension schemes performing poorly (at least until mid 2005) and the public has witnessed one scandal after another. This has left many people worried about their future financial security because, with the demise of final salary pension schemes, they are no longer guaranteed a comfortable retirement income.

In the early part of 2006, however, Stock Market performance has been good enough to allay some of the fears about endowment policies falling short of their anticipated pay-out, so a degree of balance is being restored.

Confidence in the Government and the financial services industry is fairly low, and unlikely to change in the foreseeable future. Shares (and therefore pensions) are still very volatile and have never been a low risk investment option. Government sponsored tax-free investments like ISAs have quite low maximum allowable values and will not in themselves lead to financial freedom.

Large financial institutions and pension funds are now investing more heavily in property (particularly commercial) because it offers sound long-term gains with minimal risk, compared with exposure to the Stock Market.

The property market is relatively stable and, unlike many investments, is not subject to rapid overnight fluctuations. Property offers a safe investment provided the correct approach is adopted.