Consumers move away from property as long term investment

The findings come from the ABI quarterly consumer survey, which showed that savings accounts, stocks and shares and national savings have all seen an increase in favourability as confidence in property has fallen.
Of the 2,500 people surveyed, 34 per cent saw property as the best long-term investment in the last quarter of 2010, down from 49 per cent just three months previously. While property still remains the most popular asset class, the number of people who favour it is at the lowest level since the ABI started the survey in Q3 2008.
Helen White, the ABI's acting director of life and savings, said: "For the vast majority of savers, a pension should be a fundamental part of their savings plan. Pensions attract generous tax relief and, through life styling, can reduce risk as people approach retirement.
"We know that over 40 per cent of people are not taking basic steps to save sufficiently for their retirement. This may be as property, despite this fall from favour, is still seen by many as being their retirement nest egg. This is despite the dangers of investing in a single asset and the lower returns on property compared to equities for long term investments."
ABI analysis also shows that, between 1960 and 2009, the return for equities is higher than the returns on property for nearly all 20-year investment periods. Even over a much shorter period, equities are the top-performing asset in 64 per cent of 5 year periods between 1960 and 2006.