Young people look to property instead of pensions
27 August 2003
Today's working people are increasingly hoping that the rising values of their homes will see them through their retirements - instead of investing in pensions.
New research from insurance company Prudential suggests that 55 per cent of 24 to 35 year olds believe that uncertain stock markets compare badly to the solidly rising housing market.
Professor Merlin Stone of Bristol Business School, author of the report for Prudential, explained, “Many people have begun to question the value of investing in stocks and shares and have increasingly looked to invest in property, believing that prices will continue to rise for the foreseeable future.”
In addition, the buy-to-let sector is booming.
Mark Harris, managing director at Savills Private Finance, told the Times newspaper, “We are seeing a lot of let-to-buys in the younger market of people in their late twenties and early thirties. This means that rather than selling their first homes, borrowers are taking out as much equity as possible to buy a second property but letting out their first home as an investment for the future.”