How do Peer-to-Peer Platforms open up Property Investment to the Masses?
The UK boasts one of the world’s foremost residential and commercial property markets. Renowned for its dynamism and demand, Kuflink research recently revealed that nearly 9 million UK investors are considering safe haven assets such as property in this intense political climate. As a consequence of strong market demand, the Office for National Statistics (ONS) this week revealed that the average UK house price had seen a year-on-year rise of 5.6% in April 2017 to reach £220,094.
While Kuflink’s research and the ONS data demonstrate that real estate remains a leading investment class, the ability to enter the property market is becoming increasingly difficult due to increasing prices, stringent bank lending measures and delayed mortgage approval rates – gross mortgage lending in the UK dropped by 6% at the beginning of 2017.
To act upon the property investment opportunities on offer across the country, a growing number of investors are now turning to alternative finance platforms – a recent property investor report revealed that 75% of property investors have turned to alternative finance over the past 12 months after struggling to secure loans from mainstream providers.
To support Britain’s generation of aspirational property investors, Kuflink will be releasing a new report that delves into the challenges and opportunities faced by individuals attempting to enter the property market. Furthermore, the study will examine whether or not investors are confident that the next government will provide adequate support to enable them do so. Based on a nationally representative sample of 1,000 UK investors, the report will assess the positive impact alternative finance is having in providing aspirational investors with the tools they require to access investments that would otherwise be out of their reach.
To find out how Kuflink’s industry-leading peer-to-peer platform can support your investment strategy, speak to a member of the team today on +44 (0)1474 33 44 99.
What next as 2017 general election results in hung parliament?
After seven weeks of campaigning, the 2017 General Election results have been announced – the Conservatives failed to secure a majority, with Britain waking to news of a hung parliament. The latest in a line of momentous political shocks in an historic 12 months, the surprise outcome of the election poses as many questions as it does answers.
What is a hung parliament?
A hung parliament is when no single political party gains the 326 seats required to have a majority in parliament.
What are the possible outcomes?
Theresa May has signalled her intent to form a Conservative coalition government with Northern Ireland’s Democratic Unionist Party
Theresa May remains in charge of a minority Conservative government, risking the party’s ability to push new legislation through parliament
Theresa May resigns and Jeremy Corbyn forms a Labour-led coalition or minority government
If no party is able to form a government, a second General Election is likely to take place later this summer
However events in Westminster unfold over the coming days, the onus will be on whichever party or parties form the new government to provide direction and stability at this critical juncture. Moreover, at a time when investor and consumer confidence remains resoundingly positive towards supporting the UK private sector, it is vital that prompt and decisive action is taken to deliver the clarity required for investors to act upon these sentiments.
Maintaining positive sentiment
In the lead up to the General Election, research by Kuflink revealed that 30% of investors are currently turning to traditional asset classes such as property due to their historical resilience in times of political and economic transition. Featured in Investment Europe, 24Housing, UK Investor Magazine and Crowdfund Insider, the research also showed that 38% of investors were waiting until after 8 June to make new financial decisions, demonstrating the critical requirement for the next government to act quickly to ensure investors can execute their investment strategies unabated by uncertainty.
In the coming days, once the dust has settled and the make-up of the new government is known, Kuflink will be conducting research among UK investors to uncover their sentiments towards the country’s new leaders. Specifically, we will examine how much faith the investor community has in the new government’s ability to drive growth for Britain’s economy and its property market.
General Election 2017: What do the Parties Propose for the Property Market?
On Thursday 8 June, Britain will head to the polls to elect a government responsible for managing Britain’s withdrawal from the European Union (EU). With recent Kuflink research revealing that over a third (34%) of UK investors believe Brexit has impacted their investment plans more than any other political event in their lifetime, it is important that the next elected government provides clarity and direction to reassure the country’s investor community.
This week, the Conservatives, Labour and the Liberal Democrats released their respective election manifestos – mapping out their future vision for the country amidst a period of economic transition and change. Property featured prominently across all three party manifestos, each proposing different measures to ensure the future growth of the UK real estate market.
Building upon the policy initiatives first announced in the Housing White Paper earlier in the year, the Conservative Party pledged to deliver an additional one million homes by the end of 2020. This would be followed by the construction of an additional 500,000 residential properties by the close of 2022. With investor demand for properties currently outweighing the supply of housing stock, the Conservative Party plans to catalyse movement within the property market through the construction of new homes. This would be supported by additional measures to modernise the home-buying process and cracking down on malpractice within the letting market.
In a similar vein to the Conservatives, Labour has also committed to building over a million new homes. This will be complemented by the construction of 100,000 council and housing association homes each year. To ensure policy measures are in place to address the underlying issues affecting the housing market, Labour announced that it would also create a new Department for Housing; extend High Speed 2 to Scotland; and ensure Crossrail 2 is built.
Finally, the Liberal Democrats have pledged to contribute 300,000 new homes a year, introduce three-year tenancies and link rent increases to inflation. The Liberal Democrats have also proposed to abolish the Voluntary Right to Buy pilot scheme and to introduce new regulations on the advertising of UK residential real estate in international markets.
With Kuflink’s timely research finding that 30% of UK investors are turning to property in light of the snap General Election and Brexit, real estate investment remains a popular destination for investors in times of change. As such, the commitment of all parties to the construction of new properties and the advancement of infrastructure projects to support market demand is promising to see. For the government elected on 8 June, it is of utmost importance that targeted initiatives continue to sustain the dynamism of the UK’s globally-renowned property market.
