Investor sentiment in UK property saw the second-biggest month-on-month downward swing in June, down six percentage points, while confidence in gold reached a new high, according to the Lloyds Bank Private Banking Investor Sentiment Index.

Investor sentiment in UK property saw the second-biggest month-on-month downward swing in June, down six percentage points, while confidence in gold reached a new high, according to the Lloyds Bank Private Banking Investor Sentiment Index.

Despite retaining its status as the highest-scoring asset class at 46 per cent, net sentiment around UK property is at its lowest year-to-date in 2014, together with US shares and UK corporate bonds at 5.5 per cent and 10 per cent, respectively.

The monthly survey found that net sentiment among investors in the eurozone saw the biggest increase, rising two points to -18 per cent, following the eight point drop the asset class suffered last month. Despite this swing, eurozone shares are still in negative territory, continuing to be the only asset class that is viewed negatively on a net sentiment basis by investors.

UK shares and emerging markets were the two other classes to see a net increase this month, while gold saw a one point positive swing, making it the only asset class to hit a new high net sentiment score for the year.

The fall in UK property for the second month in a row narrowed the gap in investor sentiment between UK property and UK shares, sitting at 46 per cent and 39 per cent respectively.

“Investor sentiment in UK property has reduced this month which could be a reflection on the market as some moderation was always on the cards. This is in contrast with the rise in interest in Gold which is at its highest level this year, an interesting trend given the mix in market conditions across Europe,” said Ashish Misra, head of investment policy at Lloyds Bank Private Banking.

"Eurozone shares are the asset class moving in the most positive direction this month, with a surprisingly positive trend following a drop last month; how it evolves over the coming months could be one to watch,” said Misra.