A new independent study shows that UK investors still trust bricks and mortar but have decided to put their plans on hold due to COVID-19.
People around the country regard property as the safest place to put money, mainly due to how consistently it performs. If you speak to the average person on the street, they’ll say “you get nothing from putting money in the bank” with many scoffing at the thought of investing in the stock market.
Over previous decades, property investment has been Brits go-to, safe haven.
Fast-forward to now and the landscape is decidedly different. The COVID-19 outbreak is causing people from all walks of life to reassess.
Seeking to explore what the impact of the virus has been on these long-held views, FJP Investment commissioned an independent study involving more than 850 UK investors.
Each of the people who took part in the study had investments of more than £10,000, excluding property, pensions, savings or SIPPs.
Results from the study found that 20% of investors were planning on buying one or more properties in 2020 but will no longer be doing so as a result of the coronavirus pandemic. This figure nearly doubles for millennials with 39% of those aged between 18 and 34 deciding to put their property-buying plans on hold.
Similarly, the research found that 19% of investors were planning on selling one or more properties in 2020 but have since decided not to.
More generally, 43% are not making major financial decisions until the pandemic has passed.
However, despite some hesitancy about pushing ahead with investments, the research showed almost half (48%) of UK investors still view bricks and mortar as a safe and secure asset during the current crisis, compared to just 12% who do not; the remaining 40% are unsure.
Jamie Johnson, CEO of FJP Investment, said: “Today’s research demonstrates just how COVID-19 has affected people’s property investment plans. There is a clear reluctance to engage with the market right now from both buyers and sellers, despite the fact real estate is still regarded as a safe investment avenue in this volatile period.
“With the Government allowing real estate sales to go ahead again by relaxing social distancing measures this week, it will be interesting to see whether this affects investors’ attitudes. Far from being business as normal, I believe prospective buyers and sellers will still tread with caution in the coming month. However, once there is more certainty about the future, it seems likely there will be a rush of activity in the property market.”
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