Which assets will investors be turning to in 2020?

In truth, as the dust only just begins to settle on the General Election, and with Brexit still looming on the horizon, we are still seeking answers to many of the same questions we had at the start of the year.

Naturally, this state of flux has created much consternation in the business world, particularly for brokers striving to satisfy the financial and wealth needs of their clients. For those involved in the mortgage market, two things are clear. The first is that buyer demand for UK property has remained resilient in the years following the EU referendum. The second is that many prospective buyers have adopted a “wait and see” approach, not committing to any major purchases though actively on the lookout for new opportunities.

In a bid to understand how investors of all stripes have been affected by this political and economic landscape, Butterfield Mortgages Limited (BML) recently commissioned a survey among 1,100 UK-based investors―all of whom have investments in excess of £10,000. The BML research found that over half (53%) currently own a property investment separate to their current residence. For a nation of aspirant homeowners, this might not come as a huge surprise; for many Britons, buying a property is synonymous with financial stability―and even prosperity.

It’s little surprise, then, that the political tumult has further increased demand for the asset, with one in five of those surveyed saying they intend to invest more into property in 2020―presumably because they consider it a reliable investment in difficult times.

These trends contrast favourably with more niche assets. Take cryptocurrencies for example. While only 17% of investors surveyed own assets in the digital monetary system, as many as 10% of them are considering reducing their amount in the New Year. At a time when the state of current affairs is difficult to predict, many people are clearly aiming to move toward financial products that have historically consistent, healthy gains. Indeed, a significant majority (64%) do not consider cryptocurrencies to be a reliable investment, indicating that many are looking to move into more dependable assets.

There’s little doubt the newly-elected government will need to help the lagging property market in the New Year. With Brexit uncertainty likely to continue into the medium term, policy leaders must be proactive in tackling the housing crisis and tapping into latent demand in the sector.

Indeed, evidence from the BML survey clearly demonstrates that for those in the property sector, an uptick in the market could be on the cards; 42% of people are holding off making any major investment decisions until Brexit is resolved.

Overall, there is clear investor appetite for property, and depending on how the next few months play out, we should see an increase in real estate transactions across the country as certainty is once again returned to the property market.