Property 'still a popular investment choice'

A new report from Scottish Widows reveals that many British people still believe property provides better returns than other investments.

The study found that 45 per cent of people living in the UK would rather invest their money in property than anything else, although the impact of the economic downturn does seem to have altered some perceptions.

According to the report, 36 per cent of respondents that that owning property this year is not as good an investment as it was before the onset of the recession.

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

’We have already seen many unfortunate homeowners in negative equity,’ she added.

Commenting on the findings, partner at Bloomsbury Financial Planning Jason Butler said that people are still in the habit of investing in ’what they understand, rather than what gets them the best return’.

A report released by the Ernst & Young ITEM Club this week states that the recent rise in property prices will not be able to sustain itself beyond spring 2010.
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