A study, which involved corporate executives, finance professionals, and entrepreneurs with an average income of over £510,000, found that 77% of these individuals are looking to enhance their stakes in UK property, with an average additional investment of £380,000
Recent research conducted by Investec has revealed that high net worth individuals (HNWIs) are preparing to increase their investments in the UK property market despite economic uncertainty and fluctuating house prices.
The study, which involved corporate executives, finance professionals, and entrepreneurs with an average income of over £510,000, found that 77% of these individuals are looking to enhance their stakes in UK property, with an average additional investment of £380,000. Interestingly, 11% of these investors are willing to increase their investment by £500,000 or more, indicating their confidence in the sector.
On the other hand, a minority of 14% plan to decrease their property investments, with 3% even considering a complete exit from the market.
Approximately 6% have no intentions of altering their investment strategy.
Investec suggests that this enthusiasm reflects a positive outlook on future house prices and interest rates, which in turn supports continued interest in buy-to-let ventures and remortgaging activities.
The research also highlights a trend of leveraging other assets for property investment, with 58% of respondents borrowing against their investment portfolios. Among these borrowers, a significant portion (21%) have loans exceeding £250,000, typically used for reinvesting or assisting family members in property acquisition.
Despite uncertainty around house prices, as a business, we are seeing that a large number of high net worth individuals remain optimistic about the sector, according to Cheryl Quinn, private banking team lead at Investec. Many view the present instability as an opportunity for increasing their exposure to UK property at an attractive price point and very much value the ability to leverage income in order to fund investment properties.
She added: However, these individuals can struggle to access lending because of their complex income profiles. This is especially true of city professionals, who often receive a large part of their remuneration as discretionary income, and entrepreneurs, who usually have a large part of their wealth tied up in their businesses. This, along with the current market uncertainty, means that clients need to think carefully and seek independent expert advice before any major decisions.
