Thames River extols property as guard against inflation

Income from investments in European real estate offers protection against inflation even if property prices do not, according to Thames River Capital.

Income from UK property has remained fairly stable, between about 4% and 10%, since 1971, according to data from the London-based manager. Capital values have fluctuated over the same period, between around 30% growth, to a fall of almost the same magnitude in 2008. European real estate prices are about 40% off their early-2007 peaks, says James Young, Thames River's European sales manager. He says, while real estate does not always provide investors protection against inflation through capital values, it has done so through income. Young says: "The income return has averaged 9....