Standard Life’s Savings Investment Index revealed a rise in the BTL market over the past three months. Its study showed a rise of 35 per cent in the number of people viewing property as an investment vehicle. However, as confidence and interest in the BTL market grew over the past three months, Standard Life reported a drop of 25 per cent in national savings over the same period.
Commenting on the findings, Trevor Matthews, chief executive of life and pensions UK and Europe at Standard Life, said: “The swing from the relatively safe haven of national savings to the more volatile area of BTL suggests people are prepared to take more of a risk with their money, reflecting growing confidence in the property market. However, the fall in overall savings intentions is worrying as it means the savings gap is likely to widen – the opposite of what needs to happen to plug the gap.”
Paul Hunt, head of marketing at Platform, said: “I think we have seen the BTL market grow and mature over the last five years. People consider taking out a residential property more now than ever as it is more attainable.”
“With the stock market not performing as well as people hope and issues regarding pensions still very much in the limelight, many people have considered property as a way of supplementing their investment portfolio.”
The Investment Index also revealed a decrease in the proportion of people intending to save more, falling from 40 per cent to 36 per cent. One likely explanation identified by Standard Life was that more people were prepared to dip into their savings to pay for holidays or home improvements.
