L&G urges investors to keep faith in property

by Gill Montia

Story link: L&G urges investors to keep faith in property

Legal & General (L&G) is urging investors not to let the recent downturn in the UK housing market stop them investing in property, which the insurer maintains is still a worthwhile consideration.

Rob Martin, a spokesman for the company, believes property is “an excellent asset to include in any portfolio”.

He notes that a number of investors have moved away from equities and bonds in property despite “excellent” returns.

While Mr Martin acknowledges that there was a “sharp correction in capital values” in the second half of 2007 and early 2008, he argues that this process has resulted in value appearing in the property market.

Mr Martin is predicting that as 2008 progresses the “fundamental attraction of the asset class” will reassert itself, causing institutional and overseas firms to increase their activity in the UK.

Meanwhile, L&G has this week launched a limited-edition offer on its six-year capital guaranteed bond seven.

The fixed-term deposit investment guarantees the return of an investor’s original capital at the end of the term.

The offer, which provides an increased level of FTSE 100 index participation, is available for an eight-week period, ending on Wednesday April 30th 2008.