A minority, or 14%, intend to lower their property investments, with 3% considering a complete exit from the market. Approximately 6% have no plans to alter their investment strategy.
This enthusiasm, Investec said, suggests a buoyant outlook on future house prices and interest rates, supporting ongoing interest in buy-to-let ventures and remortgaging activities.
The research also points to a trend of leveraging other assets for property investment, with 58% of respondents borrowing against their investment portfolios. A significant portion of these loans, among 21% of the borrowers, exceed £250,000, typically used for reinvesting or assisting family members in property acquisition.
“Despite uncertainty around house prices, as a business, we are seeing that a large number of high net worth individuals remain optimistic about the sector,” said Cheryl Quinn (pictured), private banking team lead at Investec. “Many view the current instability as an opportunity for increasing their exposure to UK property at an attractive price point and very much value the ability to leverage income in order to fund investment properties.
“However, these individuals can struggle to access lending because of their complex income profiles. This is particularly true of city professionals, who often receive a large part of their renumeration as discretionary income, and entrepreneurs, who usually have a large part of their wealth tied up in their businesses. This, combined with the current market uncertainty, means that clients need to think carefully and seek independent expert advice before any major decisions.”
