More than a third of London investors now believe property is no longer a good investment, according to new research.
In the latest indication of a slump in London’s property market, the figures also showed that only 17 per cent of high net worth investors who own buy-to-let properties planned to increase their portfolio in the future.
However, among those with over £100,000 of investible assets, only one in 10 did not see property as a good investment.
Tax changes in buy-to-let investments and recent regulations affecting portfolio landlords were cited by investment management firm Rathbone, which carried out the survey, as the main reasons behind investors turning away from property.
Robert Hughes-Penney, investment director at Rathbones, said: "Whilst it’s understandable that property, and in particular residential property, has been a popular investment in the past, it’s now making less and less sense."
Hughes-Penney added: "Not only are the returns now being impacted by an increased rate of tax, but they can also prove high risk investments due to a lack of diversification. Property investments require a large amount of capital to be held in one single asset and landlords will often hold a number of properties within one region."