With interest rates already at a record low and set to go even lower savers are flocking to the property market as they look to obtain the best return for their investment.
Jean Liggett, founder and managing director of property investment consultancy, Properties of the World, said: “As a result of the surprise interest rate hold, clients are telling us that they are keen to buy properties immediately.
“Many say that regardless of a hold in interest rates, they are still losing money in real terms by keeping it in the bank as inflation is higher than the interest they have and will be earning.
“We believe there will be an interest rate cut following the Bank of England’s next scheduled meeting in three weeks’ time which will result in a further increase in enquiries from both first-time buyers and new and experienced investors alike.
“With the tumult in the market following the Brexit vote, property continues to provide steady returns and the security of bricks and mortars. Whilst with other asset classes such as stocks and shares, there remains a lot of volatility and the value of those assets could be wiped out overnight.
“Overall we are seeing an increase in enquiries for commercial properties after the Referendum. In an uncertain market following the Brexit vote, investors like the fact that hotels, student accommodation and care homes offer fixed returns of five or more years and the return is over twice what they would get from most residential buy-to-lets.
“In the current climate where buyers feel greater uncertainty, fixed returns offer peace of mind and mitigate risk. Buyers know for example that they will get a circa 8% return year in and year out with a care home, student accommodation or hotel room compared to residential buy-to-let where the returns are not fixed and hence could fluctuate greatly year on year.”