77 per cent of landlords and investors do not think that Brexit is likely to affect their long term investment strategy, according to Market Financial Solutions (MFS).
New research from Market Financial Solutions examined how investors are planning to manage their financial strategies in 2018.5.28 million investors confirmed that Brexit is unlikely to affect their long term plans. They also said that the way they have invested since June 2016 has not been impacted by the result of the referendum. However, 23 per cent expressed concern about global events and the actions of international leaders such as Donald Trump, Vladimir Putin and Kim-Jong Un.
However, 58 per cent of the investors surveyed said that they now have less confidence in the strength and unity of the UK Government than they did at the beginning of 2017. Caution was a pervading theme in the survey, with 53 per cent claiming to prefer investing in traditional asset classes in 2018 as opposed to newer options such as cryptocurrencies.
The investment property market continues to be an attractive option, with 63 per cent regarding property as a safe and secure asset in the current market. 18 per cent will consider investing in one or more properties during the next year. There is also optimism surrounding the stamp duty cuts for first time buyers. Just 25 per cent do not think that the move will spark greater interest in the property market.
CEO of MFS, Paresh Raja, commented on the findings: ‘While confidence towards the Government has clearly been shaken by the shock General Election result, multiple Cabinet reshuffles and slow pace of Brexit negotiations in 2017, today’s research shows that investors still have a positive long-term view for the year ahead. Indeed, the survey illustrates that concerns around Brexit uncertainty are not having a notable impact on investment decisions. Interestingly, despite the hype surrounding new asset classes such as cryptocurrencies, the majority of investors are still placing traditional investments – such as property – at the top of their list in 2018.’
With regard to property investment, he added: ‘House prices may not be growing at the same rate they previously have, but with projections suggesting we will see double figure growth in property prices over the next five years, investors are clearly still keen to capitalise on real estate opportunities. Over the coming 12 months it will be interesting to see how events both in the UK and internationally impact investors’ intentions – particularly their willingness to embrace risk or adopt a more conservative approach.’