British homeowners to diversify investments
Buy-to-let investors in the UK
have been tipped to release about £18 million worth of equity from their homes over the next few years.
According to Skandia Group, worsening economic conditions in Britain is making a domestic investment less attractive that it was a few years ago.
The firm believes factors such as plummeting residential property values will prompt many to release some of the money they have tied up in their houses.
Nick Poyntz-Wright, chief executive of Skandia UK, said some of these people will probably seek to look at investing in more lucrative areas, such fast-growing foreign property markets.
He commented: "Higher mortgage rates and falling property prices will cause investors to reconsider their exposure to residential property and many will choose a more diversified approach."
Mr Poyntz-Wright added that asset diversification is an "essential ingredient" of any investment strategy.
According to Jet-to-Let magazine, the United Arab Emirates
is currently one of the most popular foreign markets among buyers in the UK.
The country was recently included in its list of the year's top ten investment hotspots for the very first time.