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.