The volatility of the markets since the beginning of this year has generated much debate about the safest investments going forward. Global economic uncertainty, falling oil prices and geopolitical instability have “spooked” the markets and stocks and shares no longer look quite such safe bets as they appeared towards the end of the last year.
Commentators have made various suggestions for alternative investments, with land being proposed as a solid prospect by some leading city figures. The wisdom of this appears to be borne out by a recent poll of IFAs which revealed that a majority of them anticipate a dramatic rise in the value of land in the UK.
The Survey of IFAs
Recently published figures show that a third of IFAs feel that the value of land will rise “dramatically” over the next three or so years. Over 50 per cent of those IFAs polled said that they think land values will increase “slightly.” Significantly, none of them believe that they will fall.
This could mean a really good time for people to look at property investment in their area with a local Letting Agents Cheltenham company at websites including meandyouestateagents.co.uk. They could help you find the right property in the right location. The areas expected to experience the sharpest rises are London and the South East, with the South West, East Anglia, the West Midlands and Gloucestershire also being slated for growth.
What Are the Factors Driving the Rise in Value?
Factors most commonly cited are the projected increase in population and the various government programmes to boost house building in the UK, both of which will put land at a premium. The latter in particular is expected to gather momentum over the next few years, meaning that the rise in land values could be long-term. Some observers, though, are urging caution, saying that rural and farm land may experience a decline in value, especially in the event of Brexit, which would see agriculture losing subsidies and trading opportunities and possibly its very viability.
Investment advisers will be watching developments closely during the coming months and years. In the meantime many will be working towards ensuring that their back office systems are robust and able to withstand the many day-to-day pressures of the industry. With changing investment trends it is quite possible we will see increased usage of financial advisor software.
Such systems may also see increasing use as a means to free up time for more strategic and profitable enterprises such as assessing land investments.