Property Investors Remain Resilient
A third of UK property professionals are set to expand their portfolios in 2018 as appetite for opportunistic deals continues, remaining resilient despite a backdrop of increased challenges.
We polled 109 property professionals as part of our research into the future performance of the UK property sector. Some 33% of investors planned to increase their portfolios, while 50% said they planned no changes in 2018. No-one questioned planned to reduce their exposure to the UK property market.
Of the 33% looking to expand their portfolios, 60% are looking to buy in the South East, compared to 20% that said they were looking to buy in London, as investors look to diversifying their portfolios geographically to broaden outside of the more expensive Capital.
The latest forward-looking results are encouraging especially as 40% of respondents don’t think conditions for landlords and property investors will improve in 2018.
2017 was a challenging year for property investors in the UK, with plenty of significant changes to get to grips with. When asked what had been the biggest challenge for landlords and property investors last year, 43% cited an additional stamp duty charge of 3% when buying an investment property.
Economic uncertainty was the second biggest challenge at 21%, followed by new affordability rules at 16%. Some 15% said accessing funding was the biggest challenge while only 5% cited the stripping back of tax relief.
During 2017, some 45% of those questioned bought residential properties as investments compared to 21% buying foreign properties. 11% bought commercial properties as investments.
While there is continuing uncertainty, particularly over how the Brexit negotiations will unfold, UK property investors remain resilient. The fact that property professionals have continued to invest in the UK, despite the uncertainty and numerous challenges, bodes well for the future of the market. Bridging finance is there as a tool to help investors fulfil their requirements when looking to purchase properties quickly and increase their portfolios. While banks have been scaling back, against a backdrop of increased regulations, bridging finance is more important than ever in providing much needed capital for investors to fulfil their funding needs.
For more information on how a bridging loan could help, call mtf on 0203 051 2331.