A third of London investors think property is no longer a good investment
More than a third of London investors now believe property is no longer a good investment, according to new research.
In the latest indication of a slump in London’s property market, the figures also showed that only 17 per cent of high net worth investors who own buy-to-let properties planned to increase their portfolio in the future.
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However, among those with over £100,000 of investible assets, only one in 10 did not see property as a good investment.
Tax changes in buy-to-let investments and recent regulations affecting portfolio landlords were cited by investment management firm Rathbone, which carried out the survey, as the main reasons behind investors turning away from property.
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Robert Hughes-Penney, investment director at Rathbones, said: "Whilst it’s understandable that property, and in particular residential property, has been a popular investment in the past, it’s now making less and less sense."
Hughes-Penney added: "Not only are the returns now being impacted by an increased rate of tax, but they can also prove high risk investments due to a lack of diversification. Property investments require a large amount of capital to be held in one single asset and landlords will often hold a number of properties within one region."