Featured by The Armchair Trader, Wealth DFM and IFA Magazine, Bowmore Asset Management research shows that UK private investors have seen the value of their gilt portfolios shrink by an estimated £2.8bn since government bond prices peaked, having held approximately £7.2bn at the start of Q3 2020 (as of 1 September 2026, UK Debt Management Office).
The impact has been felt across the broader market too, with UK pension funds and insurance companies estimated to have experienced a c.£267.7bn reduction in the capital value of their gilt holdings from a peak of £704.5bn, based on unchanged holdings assumptions. (UK Debt Management Office). Measured by price alone, the referenced gilts have lost approximately 38% of their value since Q2 2020 (State Street SPDR Bloomberg UK Gilt UCITS, which tracks the Barclays Gilt Index), with investors down by approximately 28% when income is factored in (Bloomberg Sterling Gilts Total Return Index).
Gilt prices have fallen further this year, partly due to inflationary pressures linked to the US-Iran conflict, with questions over the UK Government's ability to control spending also playing a role.
Jonathan Webster-Smith, Chief Investment Officer at Bowmore Asset Management, said:
"Over the last few years, we've been cautious over gilts as we couldn't see signs that the UK Government would be able to significantly cut spending."
Jonathan Webster-Smith added, "Given the fall in prices of UK debt, we have recently bought some low coupon gilts maturing early in 2028 and 2029. They are offering yields of over 4%, and the short-dated nature means that they may benefit from the pull to maturity, subject to the issuer meeting its obligations. If held to maturity, the gilts are scheduled to redeem at par, although their market value may fluctuate before maturity. In that situation gains on qualifying gilts are generally exempt from Capital Gains Tax. Tax treatment depends on individual circumstances and may change"
Please note that Bowmore Asset Management Ltd is not regulated to provide tax advice. This content does not constitute investment advice.
*As of 1 September 2026. Based on UK Debt Management Office data. Gilt price performance based on State Street SPDR Bloomberg UK Gilt UCITS, which tracks the Barclays Gilt Index. Total return data based on Bloomberg Sterling Gilts Total Return Index.
The Armchair Trader: UK retail investors lose over £2.8bn in gilts market – The Armchair Trader
Wealth DFM: Private investors have seen the value of the gilt holdings fall by £2.8billion - Wealth DFM
Bowmore Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. The value of investments may go down as well as up and nothing in the above constitutes advice. Gilt prices can fall when interest rates or yields rise. Investors selling before maturity may receive less than they invested.