Sourced from a survey of 1,171 Assetz Capital investors, the survey found 70% of investors don’t invest in bricks and mortar.

It indicated that bricks and mortar and BTL are no longer the primary methods of investing in real estate, with the poll showing 91% of those investors hadn’t held a bricks and mortar investment in the past five years.

The data analysing retail investor trends in the UK real estate sector also revealed 52% of investors plan to stick with their current levels in alternative real estate investments — which includes P2P secured lending, crowdfunding, and fractional property investment — over the next year.

What’s more, an impressive amount (31%) will look to increase their portfolios. 

In line with a sharpened focus on social impact and sustainability, the findings confirmed that 59% of investors are increasingly concentrating on these elements when it comes to alternative real estate investments.

•   Emily Hollands and Beth Fisher discuss all things bridging
•   Landlords prioritise tenant needs over profits when purchasing BTL properties
•   Majority of landlords report increasing tenant demand

Asked why they are planning on increasing their levels of investment in alternative real estate opportunities, 56% said they were looking for greater returns on money currently in savings, while 31% want to diversify their portfolios.

When citing the top three challenges in owning and investing in bricks and mortar, 43% of Assetz investors mentioned the hassle and time required to manage the properties, while 38% brought up maintenance and refurbishment costs. 

Growing overheads due to government regulation (35%) was the third most pressing problem. 

Stuart Law, CEO at the Assetz Group, commented: “BTL is dead, long live BTL! 

“In fact, it appears that BTL died some time ago, and we are truly in a new age defined by more modern, flexible and hassle-free methods of real estate investing.

“As it stands, the current financial system is broken; savers may struggle to get a fair return on their deposits, while businesses can’t get the funding they need to grow. 

“At the same time, there aren’t enough homes in the right places at the right prices. 

“In line with investor appetite for more alternative real estate opportunities and a more convenient, hassle-free way to invest, our focus is on continuing to innovate.”