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Property is no longer a popular investment in the UK

UK property investment

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More than a half of UK investors no longer consider property to be a good investment because of tax changes when buying a home for rent. Also the rising costs reduce the ROI (return on investment) and shrink the profits. The new rules adopted by the Prudential Regulation Authority on property purchased for investment have prompted many investors to rethink the effectiveness of their investment in properties.
It found that just under one-third of property investors said real estates are among their main investments and only 7% planned to expand their business.
The results also indicate that investors with assets over 100,000 GBP are a little more skeptical of the properties, with 38% of them not considering real estates as a good investment. In April 2016, the British government raised the stamp duty by 3% for additional properties.
In addition, since 2017, started reduction of the tax concessions that investors buying a real estates for investment could have demanded on mortgage interest rates for service costs. The tax benefits will be reduced by April 2020, when they will cease to apply to investment property owners.
The real estate investment was a popular investment choice, with 49% of Britons surveyed by the British Statistical Office saying that investing in a property rather than a retirement is the best way to save money after retirement.
The survey shows that property popularity as a class of assets is mainly due to high returns. In addition, less-experienced investors often choose properties to invest in the stock market as they are better aware of this asset class.
About 25% of surveyed investors have accumulated their wealth by investing in real estate, 17% currently have investments in private properties, 8% in commercial property, and 5% in land.
It is understandable that real estate, and especially residential property, has been a popular investment in the past, but now it is no longer so sensible. The returns have been affected by rising tax rates, and investment may also be at high risk due to a lack of diversification.