More people are choosing to invest their money in stocks and shares instead of property.
Property investment may decline as more people play the stock market.
Long-term investment in property is losing popularity as consumers opt to place more of an emphasis on savings accounts, stocks and shares, according to the Association of British Insurers (ABI).
The ABI’s quarterly survey showed that 34% of the 2,500 participants saw property as the best long-term investment for the future, which is a 15% reduction from the figures recorded just three months earlier. This means that the number of people who favour placing their cash in property is now at its lowest level since the Association started its survey in 2008.
The study also found that almost a fifth of respondents favour taking up a savings account and 14% favour stocks and shares, which is an increase of 7% and 5% respectively from September figures.
National Savings Products were popular with 7% of people where as 3% of participants invested in other items, such as art, antiques and wine. However, 24% of people said they didn’t know which long-term investment they would opt for.
Helen White, the ABI’s acting Director of Life and Savings, said:“For the vast majority of savers, a pension should be a fundamental part of their savings plan. Pensions attract generous tax relief, and through life styling, can reduce risk as people approach retirement”.
She added: “We know that over 40% of people are not taking basic steps to save sufficiently for their retirement. This may be as property, despite this fall from favour, is still seen by many as being their retirement nest egg. This is despite the dangers of investing in a single asset and the lower returns on property compared to equities for long term investments”.