Property maintains popularity with investors

Property is still holding its own with investors, despite the global credit crunch

Research from Nationwide released today shows average property prices have fallen by 4.4 per cent over the last year,illustrating the sharp correction currently taking place in the market.

Yet, property is still ranked as the second strongest investment opportunity by specialist insurance broker Aon Private Clients.

Property is still trusted as an investment by 20 per cent of buyers, second only to gold.

This places bricks and mortar ahead of other popular investments, such as arts & antiques and shares (see graph).

However, the research also finds a third (34 per cent) of the 2,031 adults surveyed are not confident investing in anything at all.

Women are much more cautious, with 38 per cent not willing to take the risk compared to just 24 per cent of men.

Property is still the second most trusted investment opportunity despite the ongoing credit crunch and potential for a sharp downturn in the market.

It was, however, gold which proved the trump investment, selected by 28 per cent of potential buyers.

This was followed by art & antiques (14 per cent), shares (11 per cent) and celebrity memorabilia (9 per cent).

Wine and classic cars ranked joint sixth with just eight per cent but still beat investment in evergreen forests (6 per cent), despite today’s focus on greener living.

"Gold has historically been a safe haven for investors in times of trouble," said Daniel Smith, director at Aon Artscope & Specie.

"Even the credit crunch and the biggest fall in gold price for a quarter of a century in March have failed to dent confidence. As with any market, prices will go up and down but the price of gold has consistently increased over the longer period, so is still considered by most to be a sound investment."