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The main concerns voiced by property investors are uncertainty regarding Brexit, higher taxation and increasingly strict mortgage lending conditions.
John Pye Property undertook a survey seeking the views of those in the UK’s property scene, with respondents ranging from investors, landlords, owner occupiers and insolvency practitioners.
38 per cent of the respondents stated that uncertainty surrounding Brexit was the key challenge that affects the property sector. Just 24 per cent found that higher taxation was the main issue, a surprising result as this is generally considered a major concern for landlords as it squeezes them financially. 17 per cent of those who were surveyed stated that stricter lending criteria was a concern.
However, the majority of respondents were positive about the prospects of the sector. 56 per cent of investors felt that there were more appealing property investment opportunities available in comparison to five years earlier.
A significant number of investors plan to diversify their portfolios in the near future, and also wish to start focusing on securing long-term tenancies instead of merely pushing up yields.
82 per cent of investors said that they were increasingly diversifying their portfolios as a response to changing market conditions. 72 per cent said that securing longer-term tenancies was more important than simply achieving the highest possible rental yield, suggesting a long-term commitment to the sector as opposed to using it as a way to gain a quick profit.
Head of property at John Pye Property, Richard Reed, said: ‘Our survey is a useful way of engaging with existing and new clients and determining what they’re looking for. Some of the results weren’t surprising as Brexit uncertainty remains a challenge for many and investors are choosing to diversify their portfolio as a result of taxation changes. We were interested to gather insight on investor behaviour and increasing confidence in the regional markets.’