Property investment hit by rate hikes
Three interest rate rises in five months have shaken confidence in property investment, according to insurance provider Standard Life.Its latest savings and investment index shows that investors' enthusiasm in property for both buy-to-let and long-term savings purposes has been dampened by the Bank of England's recent rate hikes.The Bank's monetary policy committee voted to raise rates in August and October last year before unexpectedly raising them by another quarter-point in January this year.Confidence in homes as a savings vehicle has fallen by 19 per cent since October last year while buy-to-let confidence has slumped by 27 per cent in the same period, Standard Life said."Until January 2007 the Standard Life Savings & Investment Index has shown that property is the most popular investment category in the UK," Standard Life Assurance chief executive Trevor Matthews commented."With interest rate rises having such an immediate impact on investor confidence, I hope that investors will now consider spreading their investments across a wider range of investment categories and vehicles when planning for their financial futures."
Share this..
Related stories
Council Agrees To Executive Working From Home, In Australia!
In a move which has been ridiculed by the Taxpayers Alliance Group it has been announced that Fenland District Council in Cambridgeshire has agreed to continue employing their executive director and chief finance officer Mat Taylor even though he is emigrating to Australia in October. While his current salary of £100,000 a year will be cut to £20,000 when he move to Australia he will only be wo...
Read MoreConsumer confidence under pressure
A report by the Nationwide has today cast doubts on the UK consumer market recovery with confidence falling from 66 in May to 63 in June, a full 21 points off the February 2010 peak. This is of major concern to the UK government as consumer confidence will play a major part in the eventual recovery of the UK economy. So why has consumer confidence taken a downturn? There's no doubt that the neg...
Read MorePublic Set For More Panic Buying Of Fuel
The warning signs have been there for a few days and it seems as though we are on the verge of yet another saga of panic fuel buying across the UK. The much publicised fuel delivery drivers strike seems set to go ahead from Friday this week, with the four day action set to paralyse Shell garages across the UK. But why is there a threat of large scale panic buying?
As we have seen...
Halifax increases fixed rate mortgage interest rate
In a move which is sure to anger for the UK government and the UK population in general it has been revealed that Halifax (now part of Lloyds TSB) has increased the interest rate on 18 out of 52 mortgage deals they have on offer. The 0.2% rise for new customer is despite the billions upon billions of pounds which have been poured into the company in order to ensure its future. So how can the direc...
Read MoreWebsite issues store card warning
Store cards from retailers Karen Millen, Oasis and Principles have been put up by as much as 4.3 per cent, Moneyfacts.co.uk said yesterday.According to the financial website, customers with these cards are now facing APRs of 29.8 per cent on all their purchases.The hikes also come in the run-up to the big Christmas spend - the busiest time of the year for retailers.Inflation is also at a 16-year h...
Read More