Spare savings spent on buy-to-let property
17/07/2006
Britons are putting their spare money towards buy-to-let property, new research reveals.
Property bought to achieve rental income is 35 per cent more popular than it was three months ago, according to Standard Life's savings and investments index.
Additionally, a total of 30 per cent are planning to raid their holiday savings, which is an eight per cent increase on three months ago.
However, the index suggests that with more people planning to invest in property, the number of individuals saving has fallen four per cent to 36 per cent.
Trevor Matthews, Standard Life's chief executive of life and pensions in the UK and Europe, said: "The swing from the relatively safe haven of national savings to the more volatile area of buy-to-let, suggests people are prepared to take more of a risk with their money reflecting growing confidence in the property market.
"However the fall in overall savings intentions is worrying as it means the savings gap is likely to widen – the opposite of what needs to happen to plug the gap."
Mr Matthews added that the nation needs to find "a happy medium", which involves saving for today and the future.
Standard Life's index is a quarterly survey measuring consumer sentiment for investment classes and savings vehicles.
Property bought to achieve rental income is 35 per cent more popular than it was three months ago, according to Standard Life's savings and investments index.
Additionally, a total of 30 per cent are planning to raid their holiday savings, which is an eight per cent increase on three months ago.
However, the index suggests that with more people planning to invest in property, the number of individuals saving has fallen four per cent to 36 per cent.
Trevor Matthews, Standard Life's chief executive of life and pensions in the UK and Europe, said: "The swing from the relatively safe haven of national savings to the more volatile area of buy-to-let, suggests people are prepared to take more of a risk with their money reflecting growing confidence in the property market.
"However the fall in overall savings intentions is worrying as it means the savings gap is likely to widen – the opposite of what needs to happen to plug the gap."
Mr Matthews added that the nation needs to find "a happy medium", which involves saving for today and the future.
Standard Life's index is a quarterly survey measuring consumer sentiment for investment classes and savings vehicles.
