Written by Jake Webster, Managing Director of The Seventy Ninth Group
The Autumn Budget reshaped the investment landscape, revisions to Stamp Duty and Capital Gains Tax will require individuals to reevaluate strategies for securing their long-term financial stability.
For property investors, the outlook is especially challenging. Tax increases and evolving energy efficiency requirements are driving many traditional buy-to-let landlords out of the market and the sector altogether. In fact, UK Finance data reveals that the share of homes purchased by landlords has dropped to a 14-year low, with landlord mortgages halving in the past year.
However, this turbulence is not a signal to abandon property investments entirely but an opportunity to adapt your holdings. By taking a diversified approach, leveraging large-scale capital available through asset management, you can find opportunity where others see none, and unlock the value of real estate investment.
Volatility creates opportunity
Traditional buy-to-let investments, once a cornerstone of private property portfolios, are increasingly unfeasible for many landlords. Rising costs to meet EPC energy efficiency standards, looming legislative reforms, and increased stamp duty are pushing landlords to sell off their portfolios. According to Rightmove, 18% of homes currently for sale were previously rental properties, with the figure climbing to 29% in London.
These challenges have unsettled the market, but they’ve also created opportunities for forward-thinking investors. With so many landlords exiting the sector, undervalued properties are emerging as prime targets for those equipped with the capital and expertise to secure them. Asset management firms are uniquely positioned to fill this gap, offering investors diversified access to the property market without the burdens of single ownership and the risk that is inherited with that approach.
Why Real Estate Remains Resilient
Despite market fluctuations, real estate continues to be a robust asset class. The sector offers a range of investment vehicles that cater to varying risk appetites and goals. Real Estate Investment Trusts (REITs), property funds, and fixed-income products provide entry points for investors who want to benefit from real estate without the operational challenges of buy-to-let.
These options allow for diversification across residential, commercial, and mixed-use properties, reducing exposure to risk while enhancing growth potential.
Adaptability Leads the Way
One of the standout advantages of investing through asset management is its built-in flexibility. Asset managers have the benefit of substantial capital at their disposal, allowing them to identify and seize opportunities out of reach for individual investors, whether due to limited funds or lack of expertise. As the property market increasingly shifts its focus toward high-value assets, this strategic adaptability becomes a critical advantage.
In today’s environment, characterised by strong selling rates and an uncertain outlook for future property investments, diversified portfolios emerge as a compelling and practical alternative to traditional buy-to-let strategies.
Building Resilient Portfolios
A strategic blend of asset classes, such as fixed-income products, private equity funds, and alternative investments—can act as a financial insurance policy. Fixed-income products, for instance, offer predictable returns without the ongoing management responsibilities of buy-to-let properties.
Meanwhile, private equity funds and REITs provide growth opportunities, enabling investors to tap into broader market trends, such as the rising demand for high-quality, energy-efficient properties. The flexibility and agility of asset management firms also allow them to move quickly, securing undervalued properties and maximising returns in ways that individual investors often cannot.
Staying Ahead of the Curve
For independent financial advisers (IFAs), creating resilient investment portfolios is paramount in today’s fast-moving market. Adapting to change is essential, as sophisticated investors continually seek innovative investment opportunities. To stay competitive, IFAs must engage clients in honest discussions about risk tolerance, timelines, and strategies. Building trust requires expertise and clear plans, ensuring portfolios are designed to grow despite volatility.
Success in this volatile landscape demands a sophisticated, diversified approach. Combining fixed-income products, private equity, traditional stocks, and alternative investments creates a robust financial strategy. Diversification not only protects wealth but positions investors to seize emerging opportunities.
Final Word
In a rapidly changing property landscape, adaptability is key. The challenges facing traditional buy-to-let investments are real, but they also signal a new landscape of opportunity for those willing to innovate. Diversified real estate investments, supported by the expertise of asset management firms, offer a pathway to resilience and growth in uncertain times and investors can ensure that their portfolios are not only secure but poised for long-term success.
