Five times more Brits would rather invest their savings in residential property than a pension, according to research from new property crowdfunding website Property Moose.
Property Moose, the online platform where investors pool their resources to buy residential properties, surveyed UK consumers in an effort to judge the appetite for property in the current climate.
It found 54% of respondents believe residential property was a better investment than a pension, while only 11% thought a pension was a better investment.
Despite the majority of people preferring property to pensions, only one in 10 (10%) currently had a direct investment in a property other than the one they live in.
By far the biggest reason putting them off investing in property so far, cited by 57% of respondents, was that they didn’t have the initial capital required to buy one.
The second most common reason why respondents had not yet invested in property, cited by 15% of respondents, was that they worried investing all their money in one property was too risky.
Concerns about maintaining the property while it was let, renovation costs, the complexity of buy-to-let and the time it takes to select, renovate, maintain, find tenants and collect rent were each cited by 10% of respondents.
Property Moose is designed to open up the property market to these frustrated investors by offering investments from just £500. The small initial investment also allows investors to take stakes in multiple properties, spreading risk.
Property Moose founder and chief executive Andrew Gardiner said: “Investing in bricks and mortar is a national passion for us Brits.
“That, coupled with the government’s plan to unlock the cash held in pensions, announced in the last budget, means that many people are looking for alternative ways to fund their retirement using property.
“But they want a simpler way to invest, without taking on debt and with the added benefit of spreading their risk across a number of investments.
“At Property Moose, our model means people can contribute smaller amounts to larger investments, allowing them to diversify their portfolio and with the aim of ensuring better returns.”