The East of England has replaced London as the region perceived most favourably for property investment over the next 12 months, according to research from Handelsbanken.
In its latest Property Investor Report, Handelsbanken surveyed UK property investors with an average of 35 properties across both the residential and commercial sectors.
It found 26.5% viewed the East of England as the most attractive for investment, followed by the North East & Cumbria and the North West.
It is a marked contrast to the results of the last year’s survey, in which London came out top followed by the South East.
London is now in joint fifth position, level with East Midlands, while the South East sits in fourth.
According to Handelsbanken, the survey shows a switch towards higher yields rather than strong historical demand, with residential flats now seen as the most attractive property type.
The three least attractive use types respondents identified were commercial retail, student housing and residential park homes.
The research also revealed 62.5% of investors plan to grow their portfolio this year, with added diversification across use types and geography.
Handelsbanken UK chief economist James Sproule said: “While headlines over the coming months are likely to be dominated by the general election, interest rate cuts and the ongoing cost of living crisis, these factors don’t seem to be jeopardising investors’ upbeat mindset.
“The adjustments to capital valuations, often masked by inflation, as well as increases to rents, have resulted in property once again delivering a premium over gilt yields and opened up the potential for attractive opportunities as the economic recovery progresses.”
Image © Shutterstock
Send feedback to Jim Larkin
Follow Estates Gazette
