Falling house prices means property investment is less attractive, new analysis suggests

Investing in property in England as a short term measure is no longer better than savings rates due to prices falling, according to new research. Buying property has been seen as an antidote to dismal returns on savings, but the best saving rates now look more attractive than property price growth in some regions in the last 12 months. The research from mutual insurer Royal London says that Land Registry figures show that the average price of a home in England grew by 2.6% in the past 12 months to £247,430 but in contrast the best fixed rate savings bond on the market, according to Moneyfacts, is a seven year bond paying 2.75% a year.