Investor Voice: Q4 2025
2025 Snapshot: Investor Sentiment
UK investors consistently rated the UK economy bad throughout 2025, with more expecting it to continue getting worse in the next 12 months than to get better. Investors continue to say the cost of living has gone up, driven largely by grocery costs and energy costs going up. And more investors say they are spending more than say they are spending less.
However, most investors consider their own personal finances good and more expect their personal finances to get better than worse in the next 12 months. Although negative about the economy overall, investors think current investment opportunities are good, and they expect them to only improve in the next 12 months.
2025 Snapshot: Investor Appetite
UK investors are more likely to expect to both save and invest more in the next 12 months than they are to save and invest less. The most common ‘investor action’ UK investors expect to take throughout 2025 was to buy more investments. Many also expect to open new investment accounts. Those expecting to buy more investments and open new accounts combined far exceeds those expecting to redeem investments throughout 2025.
The FTSE 100 also performed strongly throughout 2025, giving further encouragement and incentive to UK investors to invest. Throughout 2025 the UK savings ratio remain high and stable.
2025 Snapshot: Investor Opportunity
The US was seen as the best buying market by UK investors in 2024. 2025 saw an increase in market volatility, partly due to escalations in geopolitical events (the war in Ukraine, the war in Gaza) but also due to economic factors such as Trumps Tariffs in April 2025. We’ve seen investors increasingly shun US investments and turn to the UK as a safer bet at home.
Technology was consistently seen as the best investment opportunity throughout 2025, maintaining a clear +10pp lead over the next nearest sector (Energy or Healthcare) throughout 2025. Despite increasingly looking to the UK for investment opportunities, UK investors still recognise foreign equities as a key investment opportunity. Given the turbulent year, its not surprising that UK investors also increasingly turned to Cash and Commodities as safe bets and these assets consistently featured among the top best buying opportunities in 2025.
Ad Hoc Section: Investor Actions in Response to Changes to Cash ISA Rules
In the 2025 Autumn Budget, the UK government announced significant changes around ISA rules. While the annual subscription limit will remain at £20k, the amount that can be held in cash has been reduced from £20k down to £12k. In order to save the maximum £20k in ISAs per year, savers would need to invest £8k in stocks & shares ISAs.
A large number of cash ISA holders have already acted in response to this change or expect to do so. Half (49%) of cash ISA holders have researched or are likely to research other taxable savings accounts following the change to the ISA limit. Nearly half (45%) have read up about stocks & shares ISAs, while a third (35%) have reduced the amount they are saving or are very likely to. A similar proportion (32%) say they have already or are likely to take financial advice as a result of the change. Among investors with high household incomes (<£60k+), the proportion of investors that have already taken actions or are likely to take actions increases. For example, 65% have already or are likely to research other (taxable) savings accounts and 63% have already read up about stocks & shares ISAs or are likely to do so. Half (48%) have taken financial advice or are likely to do so in response.
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