Nearly four out of five respondents (79%) said the UK is either “vulnerable” or “very vulnerable” to current market and economic conditions, driven primarily by a rapidly slowing Chinese economy and sluggish Eurozone.
Against this backdrop, and the weaker than expected first reading of UK GDP in the third quarter of 2015, Property Partner asked how the uncertain state of the global economy is affecting respondents’ attitude towards UK residential property.
• 83% of poll respondents said they were more likely to weight their portfolio in favour of UK residential property.
• 13% said they were less likely to reduce the weighting of residential property in their portfolios
Asked which asset class they consider to be the safest, 36% of respondents said residential property, 27% cash, 22% Government bonds (gilts), 8% gold and 4% commercial property.
Rob Weaver, Director of Investments, Property Partner, commented: “The fears our respondents have about the vulnerability of the UK economy to a weaker global environment were confirmed this week with the lower than expected Q3 GDP number. There are increasing signs of nervousness right now and what is very clear is that people look at residential property as a lower risk investment. With property prices continuing to rise, investors are keen to place more of their assets into residential as a defensive move.”
