While property values remain uncertain, the third annual Scottish Widows Savings and Investment Report reveals that the nation's view of investing in property has been impacted by the unprecedented economic environment in last couple of years. However, investors’ actions do not necessarily mirror their sentiments.
The report reveals a shift in the way people view their property as a long term investment; over a third (36%) of people said owning a property this year is not as good an investment as before due to changing market conditions. Furthermore, only 8% of people who are investing for the long term chose property as their long term investment product choice. The research also indicates that people's attitudes to other saving and investment vehicles are changing, with an increase in the number of investors seeking security from investing in cash. When asked last year, a third of respondents would have chosen to invest in cash ISAs for their long-term investment needs. This year 42% of those saving have chosen a cash ISA for their long-term investment needs.
Although few homeowners view their property as a long term investment 45% of people still believe that property usually or always provides better returns than other investments, showing Brits can't shake off the sentiment of relying on property for their retirement.
Nearly half of Brits (48%) still believe property is a good investment and that it will withstand an economic downturn. Confidence in the long term property market has obviously not been shaken. If anything it has strengthened as when questioned last year, only 28% believed property would withstand an economic downturn and thought that prices would continue to rise.
