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Investors eye ‘real estate opportunities’ rather than new assets

Fresh research into how investors are planning to manage their financial strategy in 2018 shows that more than half - 53% - are planning to direct their capital into traditional asset classes, such as property, in the coming 12 months, opting out of alternative opportunities such as cryptocurrencies.

With house prices growing in the UK, albeit at a slower rate, the survey found that 63% of investors still consider property as a safe and secure asset in the current market.

The survey of more than 2,000 UK adults, carried out by Market Financial Solutions, also found that 18% of investors will consider investing in at least one property in 2018.

The government’s stamp duty cut for first-time homebuyers in the 2018 Autumn Budget has also been positively received, with just 25% of the investor community saying that they think the decision will be ineffective.

Responding to the potential impact of Brexit on the UK’s financial landscape, the research found that 77% of investors do not think Brexit will affect their long-term investment strategy, and said that they have not changed the way they have invested their money since the EU referendum in June 2016, while 58% of investors now have less confidence in the strength and unity of the Conservative government than they did 12 months.

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,” said Paresh Raja, CEO of Market Financial Solutions.

He added: “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.”

Reflecting specifically on the property investment market, he commented: “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.”

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