Despite being in power for almost six months, new research from Excellion Capital shows 69% of property investors lack confidence in the government.
To put it lightly, last year was difficult on the UK economy, but the nation’s property sector appears to have weathered the storm well.
However, the government have warned we’re not out of the woods yet as this year will see authorities fight to implement strategies outlined in the Autumn Budget – some of which sent panicked shockwaves through the property industry.
To give context into how property experts are feelings about the looming financial struggles, Excellion Capital – a leading debt advisory and investment firm – surveyed UK investors.
Overall, the research shows the majority of experts plan to focus on investment, followed by renovation, development, land acquisition and conversions. Though when it comes to securing funding for their projects, 20% of professionals admitted they were concerned about ‘high interest rates’ that comes from borrowing loans from banks.
Likewise, 22% of property investors cited ‘economic volatility’ and ‘rising construction costs impacting project budgets’ as being some of their biggest concerns this year.
Other obstacles standing in the way of investors success outlined in the survey include ‘regulatory and/or policy changes’ implemented by the Labour government (24.8%), followed by ‘the risk of the UK falling into recession’ (20.9%), and ‘high interest rates’ (17.8%).
With these factors in mind, 17.9% of respondents surveyed claimed they had next to no confidence in taking on new investments in 2025. What’s more, even more participants (38.1%) claimed they don’t feel comfortable taking on new debts this year.
‘Twelve months ago, as we looked ahead to 2024, there was a genuine sense of optimism in the property market that hadn’t been felt since before the pandemic,’ Ashley Marks, head of real estate at Excellion Capital said. ‘So it’s incredibly frustrating for investors to now be looking into 2025 with so many obstacles and challenges still in their way, from high interest rates, inflation, geo-political pressures and, specifically in the UK, an economy that has failed to grow and an Autumn Statement that appears to have further damaged trust in government.’
‘There are always ways to navigate a challenging environment, and those who keep pushing forward when the sea is chopping will be well ahead of the regatta by the time the waters become more calm,’ Ashley continued.
The full research can be accessed here.