First time investors gearing up for Lloyds share sale

26th October 2015


One in eight people who are interested in the Lloyds share sale are first time investors, according to a survey conducted by stock and fund broker Hargreaves Lansdown.

Since the government announced details of the Lloyds share offer on 5 October, more than 170,000 people have registered with Hargreaves Lansdown for updates on the sale.

Furthermore, its research found that one in five, or 20% of people who have expressed an interest in Lloyds first took part in a public offering in the privatisations of the 1980s and 90s.

But the results illustrate how the Lloyds sale has galvanised a small army of new investors into thinking about saving for their future.

It believes that encouraging more saving and investment is crucial to make sure more people are financially prepared for their future, and can look forward to a reasonable level of comfort in retirement.

This is particularly important against a background of rising unsecured household debt, which has reached a five-year high of £174bn.

Laith Khalaf, senior analyst, Hargreaves Lansdown said: “The Lloyds share offer has clearly captured the imagination of first time investors, as well as the original generation who took part in the privatisations of the eighties and nineties. This demonstrates how high profile public offerings can really motivate people to think about investing for their future.

“Despite the success of ISAs and pension auto-enrolment, we are still a nation of borrowers, not savers. The public response to the Lloyds share offer is a welcome tonic to the rising level of unsecured borrowing, which is now at a five year high.

“Investors are keen to apply for shares through their SIPPs and ISAs. We don’t know yet whether this will be possible, but it shows investors value the ability to shelter their dividends from income tax, and protect their profits from capital gains tax too.”

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