Despite ongoing economic and regulatory hurdles, a new study by Market Financial Solutions (MFS) shows UK property investors maintain a positive outlook for the upcoming year.
In a survey of 2,000 UK adults conducted by the specialist lender, 16% have property investments, including options like buy-to-let properties, vacation homes, and commercial properties. Among these investors, 53% are confident about their investment’s future, while only 14% feel doubtful.
However, investors do recognize existing difficulties. Less than 40% (38%) think managing their property investments this year will be simpler than the previous year, and over half (56%) are concerned about the possibility of a UK recession, which was recently confirmed.
Furthermore, among buy-to-let property owners, 63% are anxious about the level and complexity of current regulations, and 56% feel that the increasing number of rules is keeping them from expanding their buy-to-let portfolios.
Paresh Raja, CEO of Market Financial Solutions, commented: “It’s impressive that one in six UK adults has property investments, showcasing the enduring charm of real estate to both retail and expert investors. Clearly, there’s more optimism than pessimism in the property investment sector right now.
“Nevertheless, investors are rightfully cautious of the issues that are impacting their portfolios. The fear of a recession is significant, and the growing rules, especially in the buy-to-let area, are worrisome as well.
“The outcomes of the upcoming general election could either alleviate or heighten these concerns. From a lender’s perspective, uncertainty is unwelcome. Thus, better insights into economic health and future policies regarding housing and investments would certainly enable better investment decision-making in both the short run and the long haul.”
