The majority (60%) of global institutional investors think the UK risks losing ground internationally without faster base rate cuts.<\/p>\n
Further Bank of England base rate cuts could boost consumer spending, but in the process it would likely bump up the inflation rate.<\/p>\n
The base rate currently stands at 4%, while the inflation rate stood at 3.6% in October 2025, above the Bank\u2019s long-term target of 2%.<\/p>\n
Three quarters (76%) of institutional investors think UK political uncertainty has undermined market confidence, while 92% said that the Building Safety Act has negatively impacted their real estate strategies and operations.<\/p>\n
Jonathan Long, head of corporate real estate lending at Investec, which conducted the research, said: \u201cWith pre-Budget uncertainty compounding the challenging fiscal backdrop and the lack of any real progress around proposed reforms to areas such as planning, it\u2019s no surprise that investors are feeling more cautious.<\/p>\n
\t <\/p>\n
\u201cHowever, there are grounds for optimism. With several of the headwinds viewed as near-term only, and the fundamentals of the UK Living sector \u2013 compelling long-term demographic demand and a chronic shortage of high-quality, purpose-built homes \u2013 remaining strong, investors are continuing to look through the noise and are positioning themselves for a recovery in 2026.<\/p>\n
\u201cThis resilience has been a consistent theme across the previous editions of our three Future Living reports, which were published during some of the most turbulent market conditions in recent memory.\u201d<\/p>\n
Against a backdrop of declining new home delivery, almost half of investors (46%) have shifted focus away from new development, pivoting instead towards refurbishing or repositioning existing assets.<\/p>\n
More positively however, 88% of investors did not consider the Building Safety Act a major obstacle to the long-term growth of non-owner-occupied residential real estate in the UK.<\/p>\n","protected":false},"excerpt":{"rendered":"
The majority (60%) of global institutional investors think the UK risks losing ground internationally without faster base rate cuts. Further Bank of England base rate cuts could boost consumer spending, but in the process it would likely bump up the inflation rate. The base rate currently stands at 4%, while the inflation rate stood at […]<\/p>\n","protected":false},"author":1,"featured_media":5879,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n