Despite a raft of regulations hitting the buy-to-let sector in the past year, one in five Brits still see it as the safest investment option for their long-term savings, new research from TheHouseShop.com shows.
Just over a third of respondents to the survey thought the safest place to put their money was in a high interest ISA (34%). Premium bonds were viewed as the safest investment by 13%, while only 7% favoured stocks and shares.
However, it was interesting to note that a sizable 25% of people surveyed lacked faith in the safety of any long term investment option, and instead believe that nothing in particular is a safe bet for long-term savings.
Older generations were less inclined to trust buy-to-let safety in the long term, with just 15% of those aged 55 and over selecting this option, compared to 25% of 35-44 year olds.
The most popular safe bet investment option for the 55 and overs were high interest ISAs, with more than 1 in 3 (36%) choosing this option.
Buy-to-let was most popular in London, with one in four (26%) respondents viewing it as the safest investment option – compared to just 11% of people in the North East.
Nick Marr, co-founder of TheHouseShop.com, said the figures demonstrated the confidence in the strength of the UK property market and its ability to maintain investments in the long run.
“It was interesting to see that despite the recent cuts to buy-to-let tax relief, increased stamp duty on second home purchases and tighter rules for buy-to-let lending, property investment still holds enduring appeal for Brits looking to secure their long-term savings,” he said.
“However it was also quite worrying to see that so many people believe they do not have a safe investment option available to them and feel they cannot guarantee the safety of their long-term savings in the current economic market. Perhaps these people are more pessimistic about the fortunes of the housing market over the coming years, or fear a potential interest rates rise that could see buy-to-let mortgage repayments skyrocket.”
