HMO buy to let remains a popular investment choice

Most UK property investors are still confident in the value and performance of their portfolios – and 71% have not seen a decline in the value of their portfolios since December 2021.

That’s when the Bank of England began raising interest rates from the historic low of 0.1%.

The research from Sourced Franchise also found that 89% of property investors have seen a positive return from their portfolios in the last five years, underlining the resilience and stability of real estate as an asset class.

The survey also found that real estate is the most popular form of investment in the UK, apart from stocks and bonds.

‘Resilient nature of the property market’

Sourced Franchise director, Chris Kirkwood, said: “Confidence amongst investors remains largely unwavering and despite the wider economic picture, the resilient nature of the property market has meant that the majority are yet to see any negative impact to the value of their bricks and mortar portfolio.

“While the rest of this year is being viewed with perhaps a greater degree of caution, the overarching opinion is that the market will remain there or thereabouts, with no meaningful reduction in property values on the cards.”

He adds: “As a result, most investors plan to sit tight until they show their next hand, opting to neither reduce or increase their level of investment.”

HMO buy-to-let was the most preferred option

Within the property sector, HMO buy to let was the most preferred option for investors, followed by residential development, holiday homes, overseas property and buy to sell investments.

However, the survey also revealed that some investors are adopting a cautious approach for the future, due to the changing market conditions and legislative environment.

The survey found that 55% of them said that they would not change the size of their portfolio this year, while 29% said that they would wait and see how things unfold before making any further investments.

Only 16% said that they would increase their portfolio.

The main concerns for property investors are legislative changes, such as tax reforms and new regulations, increasing interest rates and inflation, and the impact of Brexit on the economy and the housing market.