Handelsbanken T e research also revealed that 82% of investors expect


Capital loses its position but


property investment remains attractive


Handelsbanken’s latest Property Investor Report, based on exclusive insights from UK property investors with an average of 35 properties each, found that the East of England was cited as the most attractive region for property investors over the next 12 months (26.5%), closely followed by North East & Cumbria (24.5%), North West (22%) and South East (21.5%), with respondents appearing to focus on areas with higher yield characteristics, rather than those with historically strong demand. Last year, London was the most popular investment


hotspot, while this year, it has dropped to fi fth position with 21% – on level-pegging with the East Midlands. Support for the South East has also fallen this year, compared to last when it scored 26%. T e Property Investor Report is based on exclusive


insights from UK property investors with an average of 35 properties each, found that nearly two thirds (62.5%) plan to grow their portfolio in the year ahead. Over a quarter (27.5%) will maintain their portfolio’s current size, and just 8.5% aim to exit the market completely. T e research also found that nearly two thirds (62.5%)


plan to grow their portfolio in the year ahead. Over a quarter (27.5%) will maintain their portfolio’s current size, and just 8.5% aim to exit the market completely. The majority (70.5%) of those looking to buy


more properties want to diversify their portfolios geographically and sectorally, with, as previously mentioned, the East of England leapfrogging London to become the most attractive region, and residential fl ats seen as the most attractive property type by investors. An overwhelming majority of respondents (81%) expect


the value of their portfolio to increase over the next 12 months, with nearly a third (31%) believing it will grow by more than 20%, and nearly 50% expecting a slight uptick of around 5%. Optimism was highest in Wales, with 59% of respondents expect to see a large upswing, the highest across the UK. James Sproule, UK Chief Economist, at Handels-


banken said: “The general election, interest rate cuts and the ongoing cost of living crisis don’t seem to be jeopardising investors’ upbeat mindset. T e adjustments to capital valuations, often masked by infl ation, as well as increases to rents, have resulted in property once again delivering a premium over gilt yields – and opened up the potential for attractive opportunities as the economic recovery progresses.”


ALL THINGS BUSINESS | 18


demand for commercial property to increase over the next 12 months, marginally ahead of residential property (77%) – possibly driven by consistent numbers of workers returning to offi ces. On a sectoral level, the three most in-demand sectors


among property investors over the next 12 months are residential flats (63%), commercial offices (62%) – be that for repurposing or to capitalise on top quality assets in prime locations – and residential houses (61.5%). Support for these sectors has risen dramatically over the last year, with fl ats up 10% (53%), commercial offi ces up 4% (58%) and residential housing up 15.5% (46%) compared with 2023. At the other end of the spectrum, the three lowest


scoring sectors this year are commercial retail (50.5%), student housing (49.5%) and residential park homes (32%).


Scan the QR code to read the latest Property Investor Report.


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