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Daily Insurance Industry News
Friday 27th of April 2018
January 26, 2011

Britons lose faith in property as investment

by Gill Montia

Story link: Britons lose faith in property as investment

The number of people who see property as the best long-term investment fell by almost a third in the final three months of 2010, compared with the previous quarter, while savings accounts, stocks and shares and national savings all saw an increase in favourability among savers and investors.

The findings come from the Association of British Insurers’ (ABI) quarterly consumer confidence survey, which reveals that while property still remains the most popular asset class, the number of people who favour it has fallen to the lowest level since the study began, in 2008.

Of the 2,500 people questioned, 34% saw property as the best long-term investment down from 49% just three months previously.

The ABI’s acting director of life and savings, Helen White, comments: “We know that over 40% of people are not taking basic steps to save sufficiently for their retirement.”

She adds: “This may be as property, despite this fall from favour, is still seen by many as being their retirement nest egg.”

According to ABI analysis, between 1960 and 2009 the return for equities was higher than the return on property for nearly all 20-year investment periods.

Even over a much shorter period, equities were the top-performing asset in 64% of five year periods between 1960 and 2006.

 

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