More Looking to Property Investments to Generate Income

In these challenging economic times, an interesting report has revealed that one in six people are choosing property investment as a pathway for generating income, so we look further into the drivers behind this.

The Appeal of the Property Sector

Analysis from Market Financial Solutions (MFS) has recently revealed that a notable portion of adults in the UK, roughly 16%, have chosen property investment as a pathway for generating income.^[1][2]

According to MFS, the property market continues to attract attention as a prime option for investors, spurred by a recent poll indicating an upbeat mood among those investing in property – whether it be residential rentals, holiday homes or business premises.

The survey also revealed that more than half of UK property investors (53%) are confident about the future performance of their investments, contrasting with the 14% who hold a negative outlook, leaving the rest with a neutral point of view.¹

The Market Outlook

MFS’ survey has shown a rise in positive sentiment surrounding the UK property market since early 2024, together with a boost in the volume of properties listed in the year to date, along with hopes of a stable economic forecast and predictions that mortgage rates may settle and start to fall towards the end of the year.

However, the report findings also discovered a significant apprehension amongst 56% of property investors, stemming from the economic downturn seen at the end of 2023, and uncertainty over the period ahead, especially the country moves closer to a General Election by next January at the latest.¹

Conversely, 54% of those surveyed are anticipating lower interest rates within the year, potentially energising the market. Additionally, 38% foresee a more straightforward experience in managing their property investments in 2024 when compared to the previous year.¹

Interestingly, the MFS survey revealed that more than half of engaged UK property investors closely monitor market trends and economic forecasts about property price and rents, to help feed into their decisions on making adjustments to their property portfolio.

The Value of Mortgage Advice

It all goes to show that if you’re considering a new income stream, such as a buy-to-let property, it’s valuable to stay tuned with the market and the bigger picture of what’s going on, to help you make educated decision making on all aspects from funding the portfolio, through to the choice of property, location and much more.

It’s wise however to seek professional mortgage & protection advice before embarking on anything, to find out more about how you can finance and start a buy-to-let portfolio, looking at your exact circumstances and with bespoke advice to fit your precise needs.

The Financial Conduct Authority does not regulate some forms of Buy to Lets. Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Sources

1. Market Financial Solutions (2024). Property investment trends in 2024. Available to download at: https://www.mfsuk.com/property-investment-trends/ [Accessed 18 April 2024]
2. BuyAssociation (2024). One in six adults have some form of property investment. Available at: https://www.buyassociationgroup.com/en-gb/2024/03/05/uk-property-investment-2/ [Accessed 18 April 2024]

All the information in this article is correct as of the publish date 25^th April 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.