HNW Investors Plan to Increase Property Investment Post-Election

A company specialising in property and real estate recently conducted research on High Net Worth (HNW) investors and their possibility of investments post the general election. The results of that research showed three in five HNW investors are likely to increase their overall investment in the property market in the next 12 months. However, they now have to take into account the changed political landscape.

What Are the Factors Driving HNW Investors?

The research revealed that one in five, which is 18% of High Net Worth (HNW) investors, are likely to increase their current property investment risk tolerance. However, 17% of HNW investors are focused on decreasing their property investment risk tolerance. The investors suggest that the government should focus on three areas to promote property investment in the UK:

• Revising zoning and land use policies
• Affordable housing market incentives
• Removing restrictions on conversions and brownfield sites

History suggests the housing and property market is negatively affected by the general elections mainly due to economic and political instability. Industry experts also believe that the economic instability will be a major challenge. Other than that, higher interest rates, tax adjustments, higher mortgage rates, increased regulations, and more are key challenges that make a property investor sceptical about property investments.

Will Labour’s Win Mean Opportunities or Challenges for Property Investors?

The Labour Party has won more than half the votes in General Election 2024. So, will this win be beneficial for property investors or will it hamper the property market?

With Labour’s win, the Bank of England (BoE) is predicted to lower the base rate presently standing at 5.25%. This could highly benefit the property investment market. Also, Labour is focusing on the affordability of housing prices, which is the major demand raised by HNW investors.

In addition, the base rate cut would help lower the mortgage rates making more people able to buy and sell their properties.

However, Labour’s focus is mostly on first-time buyers. They have promised to build 1.5 million homes by the end of their term. This would help more people climb the property ladder.

Conclusion

Recent research suggests that more High Net worth (HNW) investors are likely to invest in the property market post-election. However, there are certain challenges they may face. One such challenge is economic instability due to the elections. However, with Labour’s win secured, opportunities that may prove advantageous to both HNW and average investors may arise.