61% of UK investors say buy-to-let has lost its appeal

The majority of retail investors in the UK believe buy-to-let (BTL) investments have become far less attractive in recent years

Two-fifths of investors (40%) said they would be inclined to invest in real estate without the complications that come with property ownership. Among those aged 18-34, the figure rises to 67%.

The research comes from real estate investment platform Shojin.

Jatin Ondhia, chief executive of Shojin, said: “It’s been a year of immense volatility and investors are continuing to balance risks and opportunities against a complex economic backdrop. Crucially, our research points towards some notable trends in real estate investment.

“For one, it underlines that the appeal of BTL investing is in decline; higher stamp duty, the removal of tax reliefs, and greater regulation in the market are deterring people from traditional property investment.

“That said, the study showed that most investors still believe in the resilience of bricks and mortar as an investment asset in the current climate.

“And clearly retail investors are increasingly open to exploring different investment avenues as a means to achieving positive returns from property without owning the actual asset.

“We expect this trend to gather momentum as more digital advances continue to challenge traditional barriers of entry to property investment.”

Despite the perceived barriers to traditional equity ownership, over half of investors (59%) consider real estate to a be a strong asset class to invest in at present. Most (58%) expect house prices to continue rising in the coming 12 months, with a further 51% citing the current supply and demand imbalance as a strong factor behind the appeal of real estate as an investment.

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