Investor appetite for property growing - study

The current economic climate is failing to dampen investor desire for property investments, research suggests.

In fact, lower interest rates are leaving consumers with more of an appetite to add to their property portfolios, suggests Property for Life’s latest investor confidence tracker.

According to the study, 78% of respondents said they were more likely to invest in property now, an increase of 10% on the same study this time last year, before the Bank rate started to fall from its peak of 5.75%.

In addition, not only did 70% of those polled predict a further decrease in the base rate over the next twelve months, but 46% are expecting to see a fall in house prices.

Property for Life says while slower growth or declining prices are less positive for homeowners, investors can benefit from a slower period in the market by buying when prices are lower with no need to sell until they can expect capital appreciation.

David Austin, managing director of Property for Life, says: “The vast majority of professional investors are looking to expand their property portfolios this year, with confidence remaining high.

“Demand for rental accomodation is still driving the market, pushing rents up and a record 65% of investors say they are no longer feeling the pinch of higher interest rates.

"And as the cuts to the base rate set in fully, with more expected, the desire for buy to let property is unlikely to decline.”

He adds: “Investors’ house price expectations have been fluctuating since December, with those polled uncertain as to whether prices will see an overall decrease or stay the same.

“Now, investors seem to have come to a consensus that we will see falls overall, however slight. Serious investors are as ever taking the longer term view, certain that they will see significant returns over many years of owning property.”

Contact:
Scott Sinclair
News Editor
020 7034 2636
scott.sinclair@incisivemedia.com