According to the latest research by Rathbone Investment Management, more than half of UK investors no longer believe that property is a good investment. New stamp duty measures and a tightening of tax rules is potentially making UK property investment a less attractive proposition. Furthermore, the study also suggests that around one third of investors no longer see UK property as their primary investment.
According to a survey of 1000 UK investors and 500 high-net worth individuals, carried out by Rathbones, just 7% of individuals are planning to increase their exposure in the property market.
Despite a reduction in buy-to-let lending in April 2018, rental yields remain strong in many parts of the country and the housing market seems to be experiencing a period of stability. But the initial capital outlay for property investment is making it more difficult for new landlords to enter the market.
Whilst the number of buy-to-let purchases is reducing, remortgaging of existing buy-to-let properties is increasing, as landlords seek to give their properties a makeover and make them as attractive to renters as possible.
Hiten Ganatra, Managing Director at Visionary Finance said: “UK property has provided a strong and steady asset class for UK investors for several decades. Despite a slowdown in house price growth and increased taxation, the rental market remains strong, yields are attractive and property investment remains an excellent long-term investment.”