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From bricks and mortar to bonds, equities and Bitcoin

ended 13. November 2024

An IFA on Newspage says he has had several meetings with landlords who are now looking to the stockmarket for returns following the tax changes announced in the Budget. Have you experienced the same over the past fortnight? Have new clients approached you who were previously dyed-in-the-wool landlords but  have since decided the numbers just don't stack up — and that they want to look at other assset classes and investments? More generally, could the recent Budget change people's perception of the stockmarket in this country as many amateur landlords potentially exit left? On a more extreme level, have you seen anyone who is considering shifting funds from buy-to-let into Bitcoin, which has been soaring since Trump's election win? Any examples of changes in (property) investor behaviour following the Budget, tell us about it. Are we potentially at the start of a great investment recalibration? This is for a national newspaper article this week.

2 responses from the Newspage community

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Editor
Dariusz Karpowicz
Director at Albion Financial Advice
Recent legislative changes have prompted a notable shift in property investor sentiment, with established landlords increasingly exploring alternative investment vehicles. Following the Budget's property-focused reforms, we've observed a measured transition from traditional buy-to-let strategies towards diversified portfolio approaches. While some clients express interest in equity markets and digital assets like Bitcoin, there's a marked preference for methodical, risk-adjusted decision-making. The current economic climate, characterised by extensive quantitative easing and market uncertainty, suggests that many former property investors are adopting a prudent stance, maintaining significant cash positions while evaluating their long-term investment strategies.
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Zaid Patel
Director at Highcastle Estates
A few of our landlords have recently mentioned they want to liquidate their property portfolio and invest in the stock market as they're feeling the pinch and the stress due to rising taxes and tighter regulations. It's not something they enjoy anymore or feel passive enough. Furthermore, the stock market is more liquid, and you don't have to handle management hassles. Another landlord, waiting to evict her tenant, expressed frustration with the slow court system and increased regulation. She's already invested as an angel investor and plans to continue. She also mentioned the upcoming rental reform bill will only make things more difficult.