Just over half (51 per cent) of investors believe that UK property will remain a sound investment regardless of Brexit and Covid-19, research has found.
With the stamp duty holiday due to end on 31 March 2021, 40 per cent of investors expect house prices to rise next year, according to a survey from investment firm FJP Investment.
This compares to just 19 per cent who predict prices to drop.
The survey of more than 1,000 UK investors also revealed that the majority are worried about the long-term impact of the pandemic and Brexit.
63 per cent of respondents said they are concerned that the government’s handling of the pandemic will lead to a long-term recession and 41 per cent are worried about Brexit’s impact on their finances.
Only 42 per cent of investors believe the UK will remain a global investment hub following Brexit and Covid-19.
“The economic disruption caused by Covid-19 clearly has investors worried,” said Jamie Johnson, chief executive of FJP Investment.
“With the Bank of England downgrading its latest GDP growth forecasts and announcing a further £150bn economic stimulus, investors are concerned there is still a long way to go for the UK to overcome the pandemic-induced recession.
“At the same time, the lack of progress between London and Brussels on Brexit negotiations is posing further challenges. A no-deal Brexit is looking increasingly likely, and this uncertainty is making it difficult for investors to plan for the future.
“Despite these issues, however, our research shows that investors are still positive when it comes to property.
“House prices have been growing at a remarkable rate recently and many investors are confident this will continue over the course of 2021.
“This is important – any attempt to stimulate investment and economic growth will be boosted by a vibrant property market. As such, it is vital for the government to implement policies that sustain this interest over the long-term.”