70% of owner managed businesses (OMB) believe that land allocated for residential property development will deliver the greatest return on investment in 2016, according to Bank of Cyprus UK.
When asked about their own personal investment preferences, 52% of the respondents considered residential property to be the most attractive option, when compared to other asset types.
The barometer findings reveal that just 13% of OMBs believe land used for shops/retail will deliver the greatest return in 2016. Similarly, stocks and shares, cash, pensions and commercial property all ranked far lower than residential property as investment choices for OMBs. This is despite the Chancellor’s recently announced changes to the buy-to-let market.
Lakis Kasapis of Bank of Cyprus UK said: “We know from experience that OMBs are very committed to property as their preferred destination for longer-term investment. It is therefore not surprising that despite the clampdown on landlords announced by the Chancellor in the last two Budgets, OMBs still see the residential property market as an attractive investment opportunity.
“However, it remains to be seen whether we experience a rush to buy from potential investors in the first quarter of this year, before the stamp duty increase takes effect in April. Instead, we may see investors waiting in the wings as they assess the potential fall-out resulting from the recently announced tax changes.”