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Cash ISAs the new long term investment as investors turn their backs on property

15 September 2009 / by Rebecca Sargent

As the property market remains unstable, investors are turning their backs on the property ladder in favour of other investment options.

In fact, as the UK continues to navigate through the recession, latest research from the Scottish Widows Savings and Investment Report has revealed that investors are turning to the relative safety of cash as 42 per cent of investors say they have chosen a cash ISA as a long term investment this year.

In comparison, just eight per cent of those investing for the long term said that they chose property as their investment choice.

Commenting, Anne Young, savings expert at Scottish Widows said: "Nobody can predict what will happen in the property market. However, savers should be cautious about relying on the returns from their property as a long term investment."

Adding: "It is good news that more people are choosing ISAs as their investment vehicle this year."

Despite the fact that few long term investors have chosen property as their vehicle of choice, the study also found that 48 per cent of investors still have faith in property as a good investment.

Ms Young adds: "There is a real need for a shift in the strong sentiment in favour of property and for people to be educated to put money aside for their future, especially if they don't currently understand how to do it or think they can't afford it."

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