Nearly one in five investors expect the UK stock market to fall by over 10 per cent in the next six months

Almost a fifth UK retail investors expect the UK stock market to fall by over 10 per cent between now and April 2019, while 6 per cent anticipate a correction of more than 15 per cent, according to new research from DIY investment platform Willis Owen.

Of those expecting the UK stock market to fall, 71 per cent cited Brexit as a key reason for this.

This is followed by 41 per cent and 37 per cent citing increased political risk or a UK recession respectively.

Due to the uncertainty around Brexit, 42 per cent of UK investors intend to reduce their exposure to UK equities and bonds over the next six months.

Furthermore, of those expecting the UK stock market to decline, 25 per cent intend to increase their cash holding, and 21 per cent plan to invest more in overseas stock markets. One in five (20 per cent) also plan to reduce the amount they save and invest on a regular basis.

However, 46 per cent of investors believe that any correction in the UK stock market over the next six months could be an attractive long-term investment opportunity.

Adrian Lowcock, head of personal investing at Willis Owen, said: “Even after the sell-off in markets in October investors remain nervous of the UK market. Our research reveals Brexit is putting off investors, and this is a dominant trend across both professional and retail investors and is reflected in industry wide data. However, investors should think longer-term when considering their portfolios. The UK looks good value for long-term investors.”