Savers use property as piggy-bank, proves Invesco Perpetual

10 February 2005
New research by Invesco Perpetual has found that savers are happiest investing in bricks and mortar rather than bonds and financial investments.

Of the 526 ISA holders questioned, 41 per cent said they believed that property would give the best returns in the year ahead - an increase of one per cent from last year's figure of 40 per cent.

Just 19 per cent believe that UK equities are most likely to offer the best returns and 13 per cent are placing their faith in fixed income investments.

US equities are the least popular investment option, with only two per cent of investors feeling confident in their return potential.

Neil Woodford, head of investment at Invesco Perpetual, considers this renewed confidence in property misplaced.

"Whilst residential property has undoubtedly been a good investment over the past few years, it is extremely dangerous to project these returns into the future," Mr Woodford warns.

According to the Nationwide House Price Index figures, residential property delivered average returns of 12.6 per cent last year, while the FTSE All-Share index returned 12.8 per cent.

Despite such cautionary figures, property remains the investment option of choice for these investors.


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