Investing in Property - Still Safe as Houses? - UK - October 2007

Abstract

Property is no longer just about a place to live - it is an investment seen by many as providing the ideal alternative to traditional pensions. Indeed, consumer research conducted for this report reveals that one in ten UK adults are seriously considering buying an investment property in the next few years. This report examines the reasons for this huge growth in the popularity of property investment, and how, exactly, buy-to-let mortgages came to account for more than 12% of the entire mortgage market.

Trust is perhaps the key issue in the long-term savings and investment market, and this report examines the extent to which this is driving investment in property. When savers do not feel that they can rely on traditional investments - and, in the wake of the Northern Rock crisis, feel that they cannot even trust deposit accounts - then the control offered by direct property investment is hugely attractive.

This report examines the issue of trust, as well as the other factors driving investment in property. It also goes beyond direct property investment to investigate the success of more ‘hands off’ options such as property-based investment funds, and the emerging REIT (real estate investment trust) sector. There is also an in-depth examination of consumers' attitudes towards property investment, assessing current ownership, future intentions and exactly why so many people are considering becoming landlords.