Consumer
confidence in property investment continues to grow according to the
latest results from Standard Life’s savings and investment index.
Buy-to-let property has jumped in popularity as an investment
vehicle, increasing by 23% in the last three months, making it the
second most popular savings medium after consumers’ own homes.
The index also highlights that the proportion of people saving has
decreased in the last three months – with 30% of respondents stating
that they are saving less than they did 12 months ago, a significant
increase from 25% in April and January. However, going forward 39%
intend to save more in the next 12 months, up from 36% in April and in
line with New Year resolutions made in January.
Trevor Matthews, chief executive of Standard Life Assurance said:
“The Standard Life Savings and Investment Index clearly shows that the
UK saver prefers to invest in bricks and mortar.”
“It is worrying that overall the savings gap appears to be widening and this issue needs to be addressed by the industry.”
The popularity of stocks and shares continues to fall noticeably
(from 11 points to 2), which suggests that while people may be prepared
to take more of a risk by investing their money in property, they are
reticent about taking on a much higher level of volatility.
Both National Savings and Premium Bonds and cash/basic savings
accounts have increased in popularity recently with National Savings
and Premium Bonds 16% more popular than in April and cash/basic savings
accounts increasing from 0 points in April to 6 points in July.
Specific investment vehicles saw little movement with ISAs falling
just one point in the last quarter. The popularity of personal pensions
and SIPPS has tailed off with no significant increase recorded in this
wave. Endowments continue to be low in popularity.
The overall Index score has increased from 19 in January and April to 21 in the current wave, the highest score so far.
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