Is Britain losing out?
One in three (30%) UK investors claim the outcome of June’s EU Referendum has put them off investing in most traditional asset classes, according to research from peer-to-peer lender ThinCats.
Since Britain voted to leave the EU, markets have been rocked by volatility, and a weaker economic outlook has led to a 0.25 per cent cut in interest rates, with all three factors having a significant impact on people’s saving and investing habits.
In the last two months, 13 per cent of active investors claim they have steered clear of currency markets after the value of Sterling plummeted. Fixed income assets are also suffering, with 10% of active investors saying they had pulled away from government bonds, while nine per cent had been discouraged from investing in equities.
Two in five UK adults (39 per cent) claim that sustained low interest rates have forced them to rethink their approach to saving, with one in five (20 per cent) – the equivalent of around 9.5m people – saying that they save less money as a result of the rock-bottom rates.
Kevin Caley, Founder and Chairman of ThinCats, said: “An unprecedented period of low interest rates combined with recent market volatility, heightened by the decision to leave the EU, has left many savers and investors scratching their heads about how best to use their cash.
“Alternative finance has come a long way in helping to plug this gap, offering some reprieve for investors, many of whom believed they’d be seeing a rate rise by 2017. In the last two months alone, our research tells us that many thousands of investors have started looking at peer-to-peer lending as a way of earning meaningful returns while avoiding the rollercoaster ride of volatile markets.”