Falling house prices have seen a decline in people’s faith in property as an important way of saving for retirement, according to a survey by the National Association of Pension Funds.

In September just one in five of the 1,200 employees questioned in the association’s employee survey rated property as the best way to save for retirement.

In February that figure was a quarter, and studies from two or three years ago, although compiled on a different basis, showed a third of the population saying they were saving in property to provide their retirement income – even though, in spite of the buy-to-let boom, only about 2% of the working age population owned more than one home.

Instead, after a long period when it has taken a battering, employees’ confidence in pensions as a way of saving for retirement had risen, the survey showed.

Financial Times