Property sees biggest fall from favour in November

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UK property saw the biggest decrease in investor sentiment of any asset class in November, falling 6.5 per cent, according to the Lloyds Bank Investor Sentiment index.

The performance of UK property dropped by 5.5 per cent, the findings show.

Investors’ confidence in US equities, UK equities, UK government bonds, UK corporate bonds, UK property, commodities and cash was dimmed in the run-up to the US election, likely due to the geopolitical uncertainty.

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Eurozone equities proved more popular, with a 12 per cent increase in investor confidence among UK investors, although that was from a low base; Eurozone equities still generate the most negativity after cash, with investor sentiment sitting at -28 per cent.

Gold retained its safe haven status and saw the biggest turnaround in investor sentiment, up 26 per cent to 45 per cent.

The research found the actual performance of the asset classes over the past month has been correlated with sentiment and was largely negative. Japanese equities were the only asset class to see month on month gains, up 4.8 per cent compared to the sentiment increasing 0.3 per cent.

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Markus Stadlmann, chief investment officer at Lloyds Private Banking, says: “Investors have continued to react in November to ongoing political uncertainty in the US but the outlook is likely to shift over the longer term.

“We anticipate seeing growing investor nervousness towards the UK as the situation around Brexit continues to evolve. Despite a small uplift in sentiment towards European equities this month, we do not believe this marks the beginning of a large scale turnaround in investor sentiment towards the asset class, which has been consistently negative for a long period now.”

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