Brexit uncertainty, higher taxation and more stringent mortgage lending conditions are among the toughest challenges currently facing property investors, including buy-to-let landlords, according to new research.
A survey, undertaken by auction firm John Pye Property, sought the views of those at the heart of the UK’s property scene, including investors, landlords, owner occupiers and insolvency practitioners.
Some 38% of respondents highlighted uncertainty around Brexit as the biggest challenge affecting the property sector, with just over a quarter – 24% – pointing to higher taxation. Stricter lending criteria from banks were also a concern for 17% of those surveyed.
But despite these concerns, the majority of responses painted a positive picture of the current market.
More than half – 56% – of investors surveyed said that they felt that there are more appealing property investment opportunities available now compared to five years ago.
In terms of future plans, the research suggests that a significant number of investors plan to diversify their portfolios and focus more on securing long-term tenancies for their properties rather than pushing up yields.
More than four in five – 82% – investors said they were increasingly diversifying their portfolios in response to market conditions, while 72% said that securing a longer-term tenancy was more important than achieving the highest possible rental yield.
Richard Reed, head of property at John Pye Property, said: “Our survey is a useful way of engaging with existing and new clients and determining what they’re looking for.
“Some of the results weren’t surprising as Brexit uncertainty remains a challenge for many and investors are choosing to diversify their portfolio as a result of taxation changes. We were interested to gather insight on investor behaviour and increasing confidence in the regional markets.”