One in five UK investors is no longer buying property this year due to the coronavirus, according to research.
A survey of 850 UK investors found 20 per cent had planned to buy at least one property this year but will no longer do so because of the coronavirus.
This was particularly noticeable among prospective buyers aged between 18 and 34, as four in 10 (39 per cent) had put their plans on hold.
Despite this, almost half (48 per cent) saw property as a safe and secure asset during the pandemic, while a mere 12 per cent disagreed and four in 10 were unsure.
Jamie Johnson, CEO of FJP Investment, which carried out the survey at the start of the month, said there was a “clear reluctance to engage with the market” despite the view that property was still regarded as a “safe investment avenue”.
Additionally, the survey found that 19 per cent of investors with plans to sell at least one property were no longer doing so this year.
Elsewhere buyers appeared to be more confident, however, as mortgage brokers said they have been approached by clients looking to buy.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said there could be opportunities for BTL investors.
Meanwhile, the survey also found that investors’ reservations extended beyond property, as 43 per cent said they were not making major financial decisions until the pandemic passes.
Those who took part in the survey all had investments worth more than £10,000 excluding property, pensions, savings and Sipps.
Mr Johnson said the government’s decision to relax lockdown measures meant that investors’ sentiment could change from a ‘wait and see’ approach in the coming weeks.
He predicted a “swift recovery” in property prices and transactions “once pent-up buyer demand is released” as a result of lockdown measures being lifted.
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