Property Market Insights

May 30th 2018

BREXIT uncertainty, higher taxation and stricter lending criteria are among the toughest challenges facing the property market, a survey by our property team has found.

We sought the views of those at the heart of the UK’s property scene, including investors, landlords, owner occupiers and insolvency practitioners.

Some 38% of respondents highlighted uncertainty around Brexit as the biggest challenge affecting the property sector, with 24% pointing to higher taxation. Stricter lending criteria from banks were also a concern for 17% of those surveyed.

However, despite these concerns, the majority of responses painted a positive picture of the current market. Around 44 per cent said that more property sales were taking place compared to five years ago and 56% felt that regional markets were experiencing growth.

Results also suggested that property investments were becoming more accessible to investors, with 62% seeing an increase in the number of affordable properties coming to market, and 56% of those surveyed said they felt that there were more appealing investment opportunities available compared to five years ago.

Respondents also noted a change in the variation of property available on the current market – around 60% agreed that there is a greater range of property investment opportunities available now compared to five years ago, with almost 70% noting an increase in the number of mixed-use opportunities available.

In terms of future plans, figures suggest that investors plan to diversify their portfolios and focus more on securing long-term tenancies for their properties rather than pushing up yields.

Around 82% said investors were increasingly diversifying their portfolios in response to market conditions, while 72% said that securing a longer-term tenancy was more important than achieving the highest possible rental yield.

Richard Reed MRICS MNAVA, head of our property division, said the survey had provided a valuable insight into the opinions, challenges and concerns of major property players.

He said: “Our survey is a useful way of engaging with existing and new clients and determining what they’re looking for.

“Some of the results weren’t surprising as Brexit uncertainty remains a challenge for many and investors are choosing to diversify their portfolio as a result of taxation changes. We were interested to gather insight on investor behaviour and increasing confidence in the regional markets.”

Our property division has gone from strength to strength since it opened in 2013, exceeding its sales targets and increasing the popularity of online property auctions.

Part of John Pye Auctions, the UK’s largest auction house, our dedicated property division holds more than 900 online auctions annually from regional hubs in London’s Old Bond Street in Mayfair, Nottingham and its 22 nationwide sites. Selling commercial and residential property at quarterly auctions initially, the property team now host auctions every three to four weeks, generating millions of pounds in sales.