Government policies, a possible share market crash and Britain’s economic uncertainty are giving millionaires the jitters as they increasingly put their money into bricks and mortar.
According to investment firm Skandia, property is now accounting for one-third of investment by millionaires, significantly more than any other investment type.
Shares now account for just one-sixth of millionaires’ wealth, says Skandia.
Furthermore, millionaires look set to continue their love affair with property, with a third saying they are planning to increase their investment in property over the next six months.
Female millionaires are particularly positive about property as an investment with four out of ten (41%) saying they are likely to increase their exposure to property investments over the next six months compared to just over a quarter (27%) of male millionaires.
But more millionaires have a negative outlook for the next 12 months than a positive one.
Almost half (46%) believe the general economic situation in this country over the next 12 months will get worse compared to just over a third (35%) who believe it will get better. One in five (20%) think the economic situation will stay the same.
Graham Bentley, Skandia’s investment expert, said: “People might assume that a lot of millionaire wealth is ‘old money’ and hence it would be natural for a lot of it to be tied up in property. However, that is not the case.
“Nearly half of millionaires say their wealth has been earned from employment income, with only 14% having inherited it.
“This shows that property is genuinely an investment that millionaires feel comfortable with and this looks set to continue.”
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