The growing pressures on the UK economy are increasing the risk associated with housing as an investment. Economic uncertainties, coupled with factors like rising inflation and interest rates, contribute to the volatility in the housing market, making it less secure.
A lot of “pro-property experts” are suggesting that we are in a cyclical period of slow growth and that a lack of supply will stabilise property values. The counterargument is that we are in a new paradigm and that the outlook for U.K. interest rates remains unstable heralding stagnation of property markets for between 3 and 5 years.
Stuart Anderson, founder of Specialist Advisors said of these developments.
“Our investment strategy prioritises lending within the housing sector, focusing on strong guarantees, avoiding significant direct investments. By doing so, we ensure downside protection, mitigating risks in the event of a market crash exceeding 30% of current property prices.”
“Our preference lies in investing in Small and Medium-sized Enterprises (SMEs), where we perceive potential growth within the current market conditions and appreciate the unique dynamics of these sectors, offering a diversified and resilient portfolio.”