Is property still seen as a lucrative investment?

Property has long been regarded as one of the best options for investors looking to gain healthy returns.

But with the Bank of England consistently raising interest rates since December 2021, many will have been wondering if it will remain a safe and lucrative choice for investors in the coming months and years.

According to a new study by Sourced Franchise, 89 per cent of property investors have seen a return from their portfolio over the last five years.

Furthermore, 71 per cent haven’t seen any decline in the value of their property portfolio since interest rates started climbing nearly two years ago.

On the face of it, this is great news, as it suggests the UK real estate market remains as strong and consistent as ever, despite external economic pressures.

However, there were some indications in the same survey that property investors are becoming increasingly concerned about market conditions, and making decisions accordingly.

For instance, 55 per cent of those polled said they don’t intend to expand their portfolio this year, because of wider economic uncertainty and signs that the market is slowing down.

In addition, 29 per cent said they were planning to adopt a wait-and-see approach before purchasing any new investment properties.

Meanwhile, almost one in three property investors admitted they were worried about current market conditions and whether their portfolio would remain profitable in the future.

Interestingly, economic factors such as rising interest rates and high inflation were only part of the reason for this concern, as legislative changes are also adding to the sense of pessimism right now.

So what can be done?

Property investors have, on the whole, seen the value of their investments hold up in the face of tough economic headwinds.

But many don’t think this luck will hold and are becoming increasingly cautious about the future.

Indeed, 52 per cent of those surveyed said they expect to see a fall in house prices in the near future, albeit only a slight one. At the same time, 13 per cent are anticipating a major crash – possibly of about £30,000 or more.

That’s a significant proportion of real estate investors who are feeling less than confident right now.

If you’re among them, now could be the perfect time to get in touch with a financial planner, who can guide you through this tough period and provide the assurances and certainty that you need.

A regulated professional can work with you to help you make the right investment decisions, even in an uncertain economic climate.

You can then move forward with the confidence and peace of mind that your money is working as hard as possible for you and that you’re not exposed to an unacceptable level of risk.

If you have any questions about managing your investment portfolio and wider finances, please don’t hesitate to get in touch with us, and we’ll be happy to speak with you.

Related articles

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Welby is a trading name of Welby Associates Wealth Management Ltd Company Registered Number NI630504 who is authorised and regulated by the Financial Conduct Authority, FCA register number 697372. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit

The House of Vic-Ryn, Moira Road,
Lisburn, Co.Antrim, BT28 2RF
+44 (0) 2892 622 910

Copyright Welby 2023 | Cookie Policy | Privacy Policy

Our use of cookies

Some cookies are necessary for us to manage how our website behaves while other optional, or non-necessary, cookies help us to analyse website usage. You can Accept All or Reject All optional cookies or control individual cookie types below.

You can read more in our Cookie Notice


These cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

Analytical cookies help us to improve our website by collecting and reporting information on its usage.

Third-Party Cookies

These cookies are set by a website other than the website you are visiting usually as a result of some embedded content such as a video, a social media share or a like button or a contact map