So what does this all mean? Neil and Mark unpick the article The annual house price growth implicit in the article is 6.50% (it doesn't actually say, so i worked it out), And this 25 year period includes the price crash of c20% between 2007-2009. The annual global stock market growth implicit in the article is 7.65% (it doesn't actually say, so i worked it out)

You need to consider leverage. Lets take an example of investing £100,000 in stocks, vs, £100,000 in property, using the leverage of debt finance, remember, the article form Schroders’ excluded “the impact of leverage/mortgage finance. “ Lets invest £100k on the stock market and see how the power of compounding helps our investment grow at, say, 10% growth per annum. After 1 year, the £100k has turned into £110k with 10% annual growth. After 2 years, the £110k has turned in to £121k with 10% annual growth. After 3 years, the £121k has turned in to £133k with 10% annual growth You have made £33k in 3 years!!! A 33% return on your £100k investment over the 3 year period!! Lets invest £100k in a property, with debt leveraged on the asset at 75% loan to value, whereby the property market value is £400,000, and see how our investment grows with both compounding, and, the power of leverage debt finance, at a growth rate of, say, 4% After 1 year, the property has increased in value from £400k to £416k, making you £16k with 4% annual growth. After 2 years, the £416k has turned in to £432k, making you another £16k with 4% annual growth. After 3 years, the £432k has turned in to £450k, making you another £18k with 4% annual growth. You have made £50k in 3 years!!! A 50% return on your £100k investment over the 3 year period!! And that doesn’t even include the rental profits of c£3k per annum. If you include that, then you have made £59k, or a 59% return over the 3 year period.