HNW investors are increasingly bullish on real estate allocations but are demanding change from the next government, according to ASK Partners.

In research commissioned by the group, it was found that 58% of HNW investors plan to “significantly” increase overall allocations to real estate in the next 12 months.

However, many cited barriers such as higher interest rates, political leadership change, increased regulation and changes to the tax system as stopping them from investing.

As such, 13% of investors felt housing should be the number one top priority for the incoming government.

Investors have highlighted more should be done to accelerate development on brownfield sites — this would include alleviating restrictions on conversions, reforming zoning and land use policies.

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According to respondents, the current government had “failed to deal with planning restrictions, the impact of affordability and the lack of a UK construction workforce”.

Daniel Austin, CEO and co-founder of ASK Partners, described these findings as positive but said more needed to be done to enable this investment to happen.

He said: “To enhance investment, investors want to see the government focus on alleviating restrictions on conversions and brownfield sites, revising zoning and land use policies, and incentivising affordable housing. 

“Addressing these issues could help overcome planning restrictions, affordability challenges, and the shortage of a construction workforce, thus strengthening the UK's real estate market.”

Respondents also identified life sciences, warehouses and logistics and co-living spaces as the most attractive real estate sectors to invest in.

Conversely, assets linked to the retail sector were deemed the least attractive.