UK investors prepare for the 2017 General Election outcome
Next week, Britain will head to the polls for the third major democratic vote in as many years. Following the 2015 General Election and the EU referendum last year, the fast-approaching day – Thursday 8th June – takes on huge significance, with the victorious party responsible for overseeing the country’s withdrawal from the European Union.
On Sunday, Kuflink’s CEO Tarlochan Garcha appeared on talkRADIO discussing how the upcoming General Election is impacting the UK’s community of investors and property buyers. Featuring on The Week with Daisy McAndrew, Tarlochan discussed how landmark political events will typically trigger speculation and caution within the financial markets, and how this has impacted investor sentiment in today’s Brexit-dominated climate. Kuflink’s own research was cited as evidence of this; our recent survey of 1,100 UK investors found that 38% of investors are awaiting the outcome of Thursday’s election before making any notable financial decisions, and a further 34% stating that Brexit has impacted their investment decisions more than any other event in their lifetime.
While some investors put their plans on hold, the majority are still continuing with their investment strategies unabated, turning to traditional asset classes that hold historical value to counter the uncertainty associated to the recent political events. Encouragingly, the UK’s property market has remained resilient, with average asking prices for homes in the UK hitting a record high of £317,000 in May. Furthermore, new research has predicted that property prices across the UK will rise by a further 6.1% in the next five years.
Kuflink’s latest report – Peer to Property – revealed that investors are turning to property in light of Brexit uncertainty, with 38% of investors favouring this asset due to its strength and stability in times of transition. As such, with Brexit negotiations commencing just 11 days after the General Election, a significant responsibility lies with the successful party to ensure the continued growth of the property market, ensuring investors are supported fully in a time of critical transition.
Alternative Ways To Invest In Property Without Becoming A Landlord
Property has become an incredibly popular investment in the UK in recent decades, not least because of the incredible house price growth. In April 1997, the average price of a property according to the Nationwide House Price Index stood at £57,406. Today that figure is a massive £207,699.
Kent firms planning to increase prices at highest level for seven years
Rising costs on imports have been blamed for 42% of businesses expecting to charge customers more for their products and services, according to the quarterly economic survey by Kent Invicta Chamber.
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Kuflink to Explore Investor Sentiment toward Property and P2P Investment
Over the past 12 months, the UK’s political and economic landscape has been altered by a series of momentous events. Beginning with the EU referendum in June 2016, the country has since witnessed the appointment of Theresa May as the new PM, a new-look Conservative Cabinet come to power, interest rates cut to record lows, Brexit negotiations officially commence and now a snap General Election called for 8 June 2017. Indeed, national research conducted by Kuflink in January 2017 found that for over 2.4 million investors, the political events of the past 12 months are influencing investment decisions more than any other factor.
Amidst these landmark announcements, financial markets have inevitably experienced fluctuations. However, the UK economy as a whole has proven its resilience – the International Monetary Fund (IMF) has predicted that the nation’s GDP is due to expand by 2% in 2017, with Britain named as the second fastest growing developed economy in the world. Furthermore, the UK property market has also demonstrated its ongoing strength; in the 12 months to April 2017, house prices grew by 2.6%, while a national housing market confidence tracker last month found that 58% of people expect average property prices to increase in the year ahead, compared to just 14% predicting a fall.
For the country’s economy to continue its impressive growth trajectory, it is of critical importance that the nation’s community of investors is fully supported – by way of education, transparency and awareness – to make informed financial decisions that sustain economic momentum. During a period of significant transition such as that of the current pre-Brexit, pre-election window, the movement of private investment and wider spending power bears vital importance as a catalyst for wider economic growth.
To that end, Kuflink has recently carried out timely research delving into the sentiments of the UK’s private investors, exploring how they are thinking and acting in the current climate – which is being shaped in no small part by Brexit and the forthcoming election. Based on a survey of more than 1,100 UK investors, Kuflink will soon launch its new report entitled ‘Peer to Property: Investor Perceptions of Alternative Finance and Traditional Asset Classes’. The study will provide valuable insight into:
• How Brexit and the General Election are shaping investors’ financial strategies
• Investors’ attitudes towards traditional asset classes such as property
• Their sentiment towards new-age investments and alternative finance
We look forward to sharing this report to you in the coming week.
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