London property ‘to outperform gold in 2014′

<p>Investors are turning away from gold.</p>

Gold's lessening reputation as the premier safe haven may take a further hit after research suggested London property could outperform the precious metal as an investment in 2014.

According to data from estate agency Chesterton Humberts, residential property in London is set to be the best performing major asset type in terms of growth for 2014, ahead of the FTSE 100 and gold.

Chesterton Humberts' Prime London Residential Sales Report 2013 Q4 showed that prime capital values rose just over 11 per cent for 2013. Meanwhile, gold's value slipped by almost a third during the 12-month period.

Nick Barnes, head of research at the firm, said there is now a "compelling" argument for making an investment in London property.

He said: "Its long term track record is impressive, having delivered strong capital growth together with low volatility."

However, investors may prefer to stick with options such as gold to store their money in during 2014 if they believe the time of the precious metal will come around again this year.

Research compiled by the London Bullion Market Association previously found gold's value will hold strongly in 2014, with its price expected to remain at around $1,220 (£899).

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