However, the survey commissioned by Rathbone Investment Management of over 1,000 UK investors and 500 high-net-worth individuals found that those with over £100,000 of investible assets were more upbeat with regards to property investment.

Only one in 10 of this group didn’t view property as a good investment.

The research found that while nearly half of high-net-worth London investors surveyed currently owned buy-to-let properties, only 17% planned to increase their portfolio.

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Robert Hughes-Penney, investment director at Rathbone, claimed: “Recent changes to the tax and regulatory treatment of buy-to-let has caused investors to take a step back and assess the viability of these investments.”

“While 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.

“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.

“Investors who are looking to invest in property, should make sure to assess their risk appetite, look at all alternative options and make sure this property is held within a well-diversified portfolio of investments.”