Investment Properties uk property investment

One in six adults have some form of property investment

The housing market remains one of the most popular asset classes in which to invest, and a recent survey revealed that optimism outweighs pessimism for UK property investment right now.

Investors in UK properties have been described as “bullish” in a new piece of research, which found that 16% of adults surveyed by specialist lender Market Financial Solutions own some form of UK property investment. This includes buy-to-let property, holiday rentals and commercial units.

This amounts to around one in six adults opting for UK property investment for an income, whether that be a continuous monthly return through rental yields, a future capital gain (often for retirement), or both.

What’s more, Market Financial Solutions also revealed that of those that own a UK property investment – or multiple – more than half (53%) described themselves as confident in the outlook for their investment. This compares with only 14% who said they were pessimistic, with the other respondents somewhere in between.

Across the UK housing market in general, positivity has been on the up since the start of 2024, with a more stable economic outlook and expectations for lower interest rates and the continued decrease of mortgage rates, which have impacted the market.

A number of indices and surveys have found that demand is building up momentum in the property market, while more sellers are also listing properties than this time last year, increasing activity levels. In terms of UK property investment for buy-to-let, the rental market remains extremely fast-paced due to a shortage supply in some areas.

Factors affecting UK property investment this year

While Market Financial Solutions described the general sentiment as bullish, the things that were holding back positivity for other investors included worries about the fact that the UK had entered a recession at the end of 2023, which was a concern for 56% of respondents.

However, a similar number of people surveyed (54%) said that they expect interest rates to come down this year, which should have a positive impact on the property market. A further 38% believe that it will be easier to manage their UK property investment or investments this year compared with 2023.

Data released by Moneyfactscompare last week revealed that buy-to-let mortgage rates had reached their lowest point since mid-2022. While some uncertainty has returned to the mortgage market in recent days, most landlords have found rates moving in a more positive direction recently.

When asked what affects people’s investment decisions, 57% of respondents said that macroeconomic indicators, such as interest rates and inflation, “significantly” influence their course of action. Any positive movement in this respect is therefore likely to boost activity in the housing market.

Just over half (51%) of those who are currently active in the UK property investment space said that they closely monitor trends within the property market to inform their investment decisions; while 51% place a high importance on forecasts such as house prices and rents when considering changes to their property portfolio.

The general election could have an impact

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 BTL 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.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT