Half would still buy property

Tuesday, 1 July 2008 12:00 AM

Over half of Brits still consider property to be a sound investment; despite recent troubled in the market, according to new research.

As many as 52 per cent of would-be investors consider property to be a good investment, with those living in London (57 per cent) surprisingly the most keen to considered this investment - despite it being one of the most expensive regions in the UK.

Confidence is also high in Scotland, with 55 per cent of Scottish respondents believing that property is still a good investment.

But confidence fell to 50 per cent in Yorkshire and was lowest in East Anglia, with less than half (43 per cent) feeling this way.

The news comes despite consistent reports of a correction in average property prices, with Nationwide reporting today prices fell by 0.9 per cent in June alone.

Confidence in the property market appears to be based on doubts over the validity and impact of the credit crunch.

According to new research from life insurer Zurich, despite the testing market conditions, less than a third of consumers have reviewed their finances in light of the credit crunch (29 per cent) and a fifth of people (21 per cent) claim it is a term created by the media.

Worryingly, more than a third of people (36 per cent) don't believe that the credit crunch will affect them.

"It is worrying to find that less than a third of people have reviewed their finances in light of the credit crunch," said Tony Solomon, business development director, Zurich UK Life.

"With the credit crunch bringing spiralling living costs, from fuel to food to interest rates, families are seeing their budgets stretched to the limit.

"It is crucial for people to do something positive such as seeking advice and reviewing their finances to ensure their money is working as hard as possible to meet their future needs," he concluded.

Chris O'Toole

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• uk property news