The UK investor sentiment has reached an all-time high since April 2016, the latest Investor Sentiment Index, released by the Lloyds Bank, reveals. This is a heartening development considering that the investor sentiment was at a low of 2.98 per cent (in April 2016), which reached 6.10 per cent this month. Incidentally, the property sector saw the second biggest growth after gold in the investor sentiment index.
Investors in the UK are still positive about the investment opportunities in the country. The biggest increase in investor sentiment was for gold (46.37 per cent) while the same for property was 31.06 per cent. These two sectors were followed by commodities (15.54 per cent) and UK shares (15.53 per cent).
During April 2016, days before the crucial Brexit vote, the investor sentiment had plummeted. However, with the investor sentiment now bouncing back in the UK, it is evident that the investors are bullish on gold, property market and shares. This is an encouraging sign for the property market, as investors will evince interest in acquiring property for safe ROI.
The UK property market has once again demonstrated its strong fundamentals, which are critical to the stability of the sector. It will be interesting to note whether the investors continue to show the same faith in the UK property market.
Recent volatility created by Brexit does not seem to have deterred investors in the near term as sentiment is buoyant for both UK shares and UK property: Markus Stadlmann, CIO, Lloyds Private Bank