Majority of investors have not seen portfolio value decline, research reveals

The majority (71%) of property investors have not seen the value of their portfolio decline, despite turbulent market conditions, according to research by Sourced Franchise.

Over the past five years, 89% had seen a return from their portfolio.

However, more than half of those surveyed did not intend to grow their portfolio this year, due to economic uncertainty.

With the exception of stocks and bonds, real estate remained the primary area of investment within the UK.

For those putting their money into bricks and mortar, houses in multiple occupation (HMOs) were the most prominent area of investment, followed by residential developments, holiday homes, overseas properties, and buy-to-sell investments.

Three in 10 (29%) had seen a decline in the value of their portfolio since interest rates started to climb back in December 2021.

A similar amount (31%) were concerned about market conditions and the long-term profitability of their portfolio going forward.

More than half (55%) were planning to neither increase nor decrease their portfolio size, with a further 29% waiting to see how things develop before making further investments.

A further 52% thought house prices would reduce, but only marginally and at a gradual place, while 29% said the market would see no significant change.

A small section (13%) were expecting a crash of £30,000 or more, but 6% were looking forward to a rally and further positive growth.

Chris Kirkwood, director at Sourced Franchise, said: “Confidence amongst investors remains largely unwavering and despite the wider economic picture, the resilient nature of the property market has meant that the majority are yet to see any negative impact to the value of their bricks and mortar portfolio.

“While the rest of this year is being viewed with perhaps a greater degree of caution, the overarching opinion is that the market will remain there or thereabouts, with no meaningful reduction in property values on the cards. 

“As a result, most investors plan to sit tight until they show their next hand, opting to neither reduce or increase their level of investment.”