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It's always going to be that way because of leverage isn't it? UK house prices are paid with a small amount of capital and a lot of debt. Shares are (mostly) bought with a higher proportion of capital. So £X today buys £X of shares, or £10X of house.
brokenbetty-
That's true but the point I am making is a little different. It's easy to look at the FTSE100 index level and draw the conclusion that UK large caps have been a poor investment over the last 20+ years. On a total return basis it's not so bad.
Personal recourse leverage is a double-edged sword, as some UK BTL investors will find out over the next few years.
NickCJ
Difference isn't so stark if you include dividends (the blue line), although obviously by living in the house you get the imputed rent. You might also say that stock markets have factored in the current macro news whereas house prices lag