67% of investors were concerned about property financing costs, with 30% being strongly concerned, research from Finbri has revealed.
The study also found that the broader economic environment was making investors more cautious, as 71% were concerned about interest rates.
In addition, 77% cited worries about inflation’s ability to bite into purchasing power and drive up expenses.
Despite these ongoing pressures, it is clear that the Bank of England’s recent decision to cut rates has had a significant impact on investor attitudes.
Finbri’s research showed that on 1st August 2024, the day of the most recent Bank of England rate announcement, Google searches for ‘mortgage rates’ spiked by 245%.
Stephen Clark, founder of bridging finance broker Finbri, said: “Property investors have seen financing costs skyrocket over the past five years and the challenges for the private rented sector (PRS) remain significant.
“Clearly any interest rate cut is undoubtedly welcome news, however the August 0.25% reduction alone is unlikely to markedly subdue property investor financial concerns.”