Homeowners over reliant on bricks and mortar says study

Posted: 12 Feb 2007 11:00:44 GMT

Two thirds of all homeowners have all their savings tied up in bricks and mortar, with no plans to diversify their assets, research from Durham University has found

Two thirds of all homeowners have all their savings tied up in bricks and mortar, with no plans to diversify their assets, research from Durham University has found.

Less than one in three homeowners view their property as a form of saving or investment however, despite spending almost all their disposable income on mortgages.

Almost two thirds of homeowners also said that apart from their homes and pensions they have no savings.

"This study really draws attention to the precarious position of the majority of English homeowners’ savings," said professor Susan Smith of Durham University.

The overwhelming majority of property owners said that they saw their home as a safety net that they could rely on if their finances were ever stretched.

"Everybody needs some savings to see them through a 'rainy day', such as illness or being out of work," said David Elms of IFA Promotion.

"It is important for people to have a diversified range of both long and short term savings."

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