UK Property Favoured by Investors Amid Political Uncertainty

Traditional asset classes, such as UK real estate, continue to be seen as ‘safe havens’ for investment.

 

Commissioned by peer-to-peer group Kuflink, a survey of over 1,100 investors across the UK shows that more than a third of respondents, or 34%, believed Brexit to have had an impact on their investment strategies.

Britain’s decision to exit the European Union appears to have particularly impacted millennials, or those aged between 18 and 34, and London-based buyers, with this figure increasing to 61% and 71% respectively.

The survey, which assessed investor sentiment towards property and alternative finance in the current political and economic landscape, also revealed that 30% of investors are favouring the property market due to its perceived strength – the equivalent of nearly 9 million people.

However, figures indicate that the majority of investors have also adopted a degree of caution, as 38% of respondents cited to be waiting until after the results of the UK’s snap General Election on June 8 to take new investment opportunities.

Commenting on the results, Kuflink’s CEO, Tarlochan Garcha said:

“The EU referendum has set in motion a number of political and economic shifts that are inevitably impacting the way the UK’s investors think and act. Today research has underlined the faith people place in property as an investment vehicle.

“With a huge number of investors gravitating towards this safe haven asset amidst the uncertainty caused by Brexit and the approaching General Election. There is undeniable investment value in retrospective data and historical evidence to support the strength of any investment class.

“For this reason, I have great faith in the resilience and strength of the UK property market and take confidence in the fact that UK investors agree.

Earlier this week, newly released data by Rightmove showed that asking prices in May saw a significant monthly increase, due to rising demand.