UK investors paid more into their portfolios during the second quarter than in the first three months of 2026 despite ongoing market uncertainty, according to new data from Scottish Widows.

Average portfolio contributions rose by 47 per cent, reaching £3,554 ($4,760) between April and June, up from £2,413 from January to March this year. The new data came from Scottish Widows, part of Lloyds Banking Group, a large UK digital bank and financial services group.

Just under half (48 per cent) reported positive returns this quarter, down marginally from 50 per cent at the start of the year, the survey reveals.

The latest Scottish Widows Investment Pulse, conducted by Censuswide between 16 June and 25 June 2026, surveyed 2,000 non-advised UK retail investors on their confidence, outlook, motivations and plans for the months ahead.

However, the number of investors increasing contributions in the second quarter (26 per cent) was down slightly from the 30 per cent recorded in the first quarter of 2026. At the same time, the number of people who said they invested less than usual has gone up from 19 per cent to 23 per cent since the last quarter.

The survey shows that a quarter of respondents made either no or very limited changes to their portfolios in the second quarter, while others opted to move some investments into cash – 13 per cent; sold some investments – 12 per cent; invested more in individual shares – 12 per cent; invested more in cryptocurrency – 9 per cent;  and 8 per cent invested more in gold.

The survey shows that the cost of living and personal finances remain the biggest factors in decision-making, but a sharp rise in influence from geopolitical conflict shows that global events are increasingly weighing on these investors’ minds.

Looking ahead, more than four in 10 expect their portfolios to perform well in the third quarter – continuing the positive sentiment recorded ahead of the second quarter. Nearly one in four will increase the amount they invest over the next three months, down from 30 per cent in the first quarter but still reflecting stable confidence levels. These investors plan to contribute an average of £3,579, with 16 per cent planning to reduce contributions.

The main factors influencing their decisions remain broadly consistent with the first quarter, with a desire to build long-term wealth (43 per cent vs 44 per cent in Q1) and a feeling that it is a good time to invest (28 per cent vs 29 per cent in Q1) continuing to top the list. More than one in five (21 per cent) are now motivated by having more spare money than usual, while others are still making use of their ISA allowance and tax benefits (19 per cent).

Nearly four in 10 investors said the cost of living and inflation were their top concerns for the future. Political uncertainty (29 per cent) and geopolitical conflict (28 per cent) follow close behind, with stock market volatility (26 per cent) and recession risk (25 per cent) also weighing on minds. Around one in six said recent volatility hasn’t affected their behaviour at all, and 17 per cent continued investing as normal, the survey shows.

UK holdings still dominate
UK-held investments remain the largest single allocation, though this has eased to 57 per cent (down from 62 per cent in Q1), with North America picking up ground at 21 per cent (up from 16 per cent). A net 31 per cent said their UK exposure has increased over the past three months, while individual shares remain in favour too, with 28 per cent increasing their exposure here.

In terms of investment themes, AI is the most popular choice (35 per cent), followed by renewable and clean energy infrastructure (25 per cent). While nearly a quarter said no themes or sectors interested them, safe-haven assets such as gold (17 per cent) and healthcare/biotech (17 per cent) were top areas of interest.

“Investors have shown real resilience this quarter, increasing their contributions even as global conflict has escalated and the UK political landscape has shifted expectations,” Manuel Pardavila-Gonzalez, managing director of investments at Scottish Widows, said. “There’s a clear sense that investors are remaining level-headed. Even as the cost of living continues to bite, most aren’t reacting to short-term noise or alarmist headlines – they’re staying the course rather than making knee-jerk decisions.

"While we’re expecting more of the same uncertainty in the next quarter, the principles of investing remain the same and it’s important not to let short-term volatility derail long-term plans,” he added.