Property investors in the UK are optimistic for the year ahead, despite facing persistent economic and regulatory challenges, according to new research from Market Financial Solutions (MFS).
The specialist lender commissioned an independent survey of 2,000 UK adults, finding that 16% hold property investments, including buy-to-let properties, holiday homes and commercial units. Of those with property investments, 53% said they are confident in the outlook for their investments, while only 14% are pessimistic.
Yet investors also acknowledge that challenges remain. Less than two in five (38%) believe that it will be easier to manage their property investments this year compared to last, while over half (56%) are worried about the UK economy entering a recession, which was confirmed earlier this month.
Meanwhile, of the investors surveyed who own buy-to-let properties, 63% are worried about the amount and complexity of regulation, with 56% saying that increasing regulation is deterring them from investing in more buy-to-let properties.
Paresh Raja, CEO of Market Financial Solutions, said: “First and foremost, it’s notable that one in six UK adults holds some form of property investment, underlining the lasting appeal of bricks and mortar among retail and sophisticated investors alike. What’s more, we can clearly see that optimism far outweighs pessimism among property investors at present.
“Quite rightly, though, investors are evidently mindful of the challenges impacting their property portfolios. Concerns over the now-confirmed onset of a recession loom large, while escalating regulation – particularly in the buy-to-let space – is another concern.
“It will be intriguing to see how the upcoming general election either eases or exacerbates these worries. As a lender, we know that people dislike uncertainty. So, greater clarity around the state of the economy and the future direction of housing and investment policy would undoubtedly help people better manage their investment strategies in the short, medium and long term.”