Property 'undermined as investment choice'

Posted: 04 Nov 2008 09:34:08 GMT

People no longer trust property as the best investment for their future, new research has revealed.

According to a survey from Alliance Trust, a turbulent year in the housing market has left just 33 per cent of people convinced that property will be the main contributor to their retirement savings.

Compared to last year's figure of 43 per cent, this represents a massive fall. In 2007, property was considered the top way for people to save money for their twilight years; now company pensions are considered a safer bet.

Steve Latto, pensions development manager at Alliance Trust, explained that the onset of the credit crunch has had "noticeable effects" on the housing market.

"It is not surprising that faith in property has fallen already this year and may decline further because of the exceptional financial crisis we are living through and the likelihood that we are heading for recession," he warned.

Meanwhile, the department for communities and local government has issued a new report on consumer experiences surrounding home information packs. It found that many people remain critical about their usefulness.

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