investors are unable to invest in the UK residential market, which remains
almost as impenetrable to the small or private investor as it was a decade ago,
according to new research from investment manager Seven Dials Financial Funds.
A smaller investor is one investing £2m or less.
Wilson, director at Seven Dials Financial said: “Much has been made of growing
institutional investment into UK residential, but by effectively barring the
smaller investor from being able to allocate their funds efficiently, the asset
class risks losing out on significant amounts of capital that will be seeking a
safe haven against the backdrop of the economic crisis caused by the pandemic.
findings show that aside from investing directly into buy-to-let, REITs remain
the best bet, though the limited number of UK residential focussed REITs and
the fact that these vehicles are vulnerable to stock market fluctuations means
that for many smaller investors these may not prove suitable vehicles.
are a number of new investment vehicles in the pipeline that may allow a
greater amount of smaller institutional investors to enter the market, and we look
forward to seeing these emerge as UK residential is a strong asset class that
will prove attractive to a variety of investors.
should now be concerted efforts to open this asset class up to a wider array of
institutional investors, especially as today’s market conditions mean many
managers will be looking to allocate their funds into safe havens.”