Property investors seem more focused on rate cuts than politics, as expensive mortgage payments drive up buy-to-let costs.
The investors were polled before the general election, so no opinions were given on the new Labour government included in the report. However, when the research was carried out, the majority (51%) of respondents said that a change in government would not affect plans for their property business. 40% of investors polled said geopolitical uncertainty made them more optimistic about the market, while 44% believed it would have no impact.
Simon Bradley, Chief Credit Officer at Handelsbanken, said: “There is cautious optimism around the property market and activity amongst existing investors is picking up. It may be that many have decided the economy has potentially reached the top of the interest rate cycle and that the time is right to engage in new deals. We are seeing many of our Handelsbanken property professionals already looking to increase their credit lines in anticipation of potential acquisitions as market rates soften and property values stabilise over the coming months.
“The report also shows signs of tentative improvements in the stress factors affecting tenants, which have been driven in recent times by the cost of living and energy crises. However, most respondents appear unaffected by potential political uncertainty and don’t believe that a change in the party in government will lead to significant changes in the market.”
