Investment Trends and Challenges in the Real Estate Market: Insights from ASK Partners

The real estate market is set to see a significant increase in investment allocation from high net worth investors in the next 12 months, according to new research by ASK Partners. With nearly three in five HNW investors planning to boost their real estate investments, the sector is poised for growth.

Investors are eyeing sectors such as life sciences, warehouses & logistics, and co-living as potential areas for high returns, while showing less interest in the retail sector. However, challenges such as higher interest rates, political changes, increased regulation, and tax adjustments are seen as potential obstacles to growth.

The research also highlighted the top three property priority areas for the upcoming government, including alleviating restrictions on conversions and brownfield sites, revising zoning and land use policies, and incentivizing affordable housing. The current government’s failure to address planning restrictions, affordability issues, and the shortage of a UK construction workforce has been noted by respondents.

Daniel Austin, CEO and co-founder of ASK Partners, emphasized the importance of addressing these challenges to strengthen the UK’s real estate market. ASK’s loan portfolio recently surpassed £1 billion, showcasing the firm’s adaptability as a lender and its ability to offer private client investors a range of real estate debt investment opportunities.

Overall, the positive sentiment towards real estate investment coupled with the identified challenges and priorities for the government suggest a dynamic landscape for the sector in the coming months.