View more on these topics

Investors tip property over equities

More than half of investors tip property to outperform equities in 2003, with only 9% expecting the opposite result, research from the Association of Investment Trust Companies reveals.

Half of the investors surveyed currently think that investing in property is a better way of saving over the long-term compared to traditional savings and investment accounts.

Of this 52%, one-third believe that the housing market is a far safer place to withstand an economic downturn, 26% believe interest rates will remain low and 24% have little confidence in equities due to their recent performance.

There are significant regional differences in opinion with investors in the South-East and Scotland most likely to tip property to outperform equities in 2003.

The regions where the highest number of investors thought equities would outperform property in 2003 were the South-West with 14% and London with 11%, in comparison to an average of 9%.

Annabel Brodie-Smith, communications director of the AITC, says: “It is surprising investors are so confident that property will continue to outperform in light of the FSA&#39s concern that house price rises may be unsustainable with some valuation measures close to or above the levels recorded before the 1989-92 house price crash.”

Patrick Connolly, associate director of Chartwell Investment Management, says: “Equities look likely to outperform property, mainly due to the latter being arguably overpriced. Equities in comparison look fair value having factored in a lot of the bad news already, from the threat of war with Iraq, through to poor economic growth and generally low sentiment.”

Mark Dampier, head of research at Hargreaves Lansdown, says: “In terms of property, it is hard to get exposure to property with small amounts of money. Most people can&#39t actually afford to buy a second or third house.

“Therefore for the majority of us peasants the simple choice for long-term savings is unit and investment trust savings plans. These are cheap, very flexible and have no contractual term. For property enthusiasts there are one or two property funds in which you could invest monthly.

“However, you need to take a long-term view. It is no good looking at a monthly savings plan after three years, seeing it is worth £1,000 having paid in £1,500, and then cancelling it.”


Little change in small business banking

Competition Commission recommendations on banking for small businesses have made very little difference to small business owners, says Moneyfacts. In October 2002 Business Moneyfacts devised three “hypothetical businesses” in order to demonstrate the probably levels of charges for different kinds of business. The experiment was repeated this month to see if the expected sweeping reductions […]

BMS offers advice on healthy homes

Homeowners should take advantage of this week&#39s cold weather to give their home a winter MOT, says BM Solutions. Matthew Grayson, a spokesman for BM Solutions, says: “Every homeowner has a list of odd jobs which need doing around the house and the recent cold weather is likely to have added yet more to the […]

BMS is first sub-prime lender to join ZAN panel

BMSolutions has become the first sub-prime lender to join ZAN Mortgage Solutions, the Zurich Advice Network mortgage panel. Michael Bolton, director of mortgages, BM Solutions, says: “ZAN is one of the UK&#39s biggest mortgage clubs and, as the first sub-prime lender to join the panel, we&#39re looking forward to making members awnare of our market […]

NatWest launches new range of fixed rates

NatWest has launched a new range of fixed rate mortgages, including a two-year rate at 4.59%, and a five-year rate of 5.05%. There are no tie-ins beyond the fixed rate period, and neither of the deals carry legal or valuation fees. A new range of first-time buyer fixed rate mortgages has also been launched starting […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]


News and expert analysis straight to your inbox

Sign up