Almost half of UK-based investors see property as a safe and secure asset despite the existing Covid-19 pandemic, new research shows.
FJP Investment commissioned an independent survey of more than 850 UK-based investors, all of whom have investments in excess of £10,000, excluding property, pensions, savings or SIPPs, to uncover their property investment plans in light of COVID-19, and found that 48% of investors favour property, compared to just 12% who do not; the remaining 40% are unsure.
However, many investors have put their buying and selling plans on hold, with 20% of those who were planning on buying one or more properties in 2020 no longer doing so due to Covid-19. This figure nearly doubles for millennials – 39% of those aged between 18 and 34 have put their property-buying plans on hold.
The study also found that 19% of investors who were planning on selling one or more properties this year will no longer be doing so in 2020.
According to the research, 43% are not making major financial decisions until the pandemic has passed.
Jamie Johnson, CEO of FJP Investment, commented: “Today’s research demonstrates just how Covid-19 has affected people’s property investment plans. There is a clear reluctance to engage with the market right now from both buyers and sellers, despite the fact real estate is still regarded a safe investment avenue in this volatile period.
“With the government allowing real estate sales to go ahead again by relaxing social distancing measures this week, it will be interesting to see whether this affects investors’ attitudes.
“Far from being business as normal, I believe prospective buyers and sellers will still tread with caution in the coming month. However, once there is more certainty about the future, it seems likely there will be a rush of activity in the property market.”