Investor confidence across all asset classes fell this month, according to the latest Lloyds Bank Private Banking Investor Sentiment Index, with UK property registering one of the largest drops.
The results of the monthly survey show that UK property recorded a fall in sentiment of seven percentage points (from 60 percent to 52 percent), the asset’s largest fall since the index began, although it is still clearly the highest in sentiment in the index.
The introduction of MMR and spiralling house prices in certain areas, most notably London are thought to affecting investors’ confidence in the UK property market.
Ashish Misra, Head of Investment Policy at Lloyds Bank Private Banking, remarked that the UK property market has experienced strong sentiment rises over the last year.
Commenting on May’s falls, he said: “These drops may be down to the impact of property prices in certain areas while the uncertainty regarding the European elections may have given equity investors pause for thought.”
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