Major concerns are on recession and increasing BTL regulation
UK property investors display a cautiously optimistic outlook for the coming year, despite ongoing economic and regulatory hurdles, according to recent research conducted by Market Financial Solutions (MFS).
The study, which surveyed 2,000 UK adults, found that 16% of respondents are property investors, with portfolios that include buy-to-let properties, holiday homes, and commercial units. Among these investors, 53% express confidence in the future performance of their investments, while only 14% feel pessimistic.
The research, however, highlights significant concerns among investors too, with less than two fifths, or 38%, anticipating that managing their property investments will be easier this year than last and over half, or 56%, expressing anxiety about the possibility of the UK economy entering a recession —a scenario that was officially confirmed earlier this month.
Particularly for those owning buy-to-let properties, regulatory burdens pose a significant worry. Around 63% of these investors are concerned about the amount and complexity of the regulations they must navigate, and 56% cite increasing regulatory demands as a deterrent to further investment in the BTL market.
“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,” said Paresh Raja (pictured), chief executive at Market Financial Solutions. “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.”
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