Investors remain committed to UK real estate but seek greater political certainty
ASK Partners’ 2026 Real Estate Investor Sentiment Survey finds private investors remain committed to UK property, but are looking for greater political certainty before deploying more capital, while residential living sectors collectively attract the strongest investor interest.
Investors remain committed to UK real estate despite ongoing economic and geopolitical uncertainty, according to ASK Partners’ 2026 Real Estate Investor Sentiment Survey. However, compared with last year, the survey suggests investors are becoming more selective and increasingly focused on political and fiscal certainty before deploying additional capital.
The proportion of investors planning to increase their allocation to real estate has fallen from 51% last year to 37% in 2026. At the same time, political certainty has emerged as the single biggest factor that would increase confidence in UK real estate over the next 12 months, ahead of further interest rate cuts, debt availability or planning reform.
The findings suggest investor concerns have evolved. While last year’s survey highlighted planning reform and development incentives as the sector’s biggest priorities, this year’s respondents identified tax policy and fiscal unpredictability, geopolitical instability and political certainty as the most significant influences on investment decisions.
Despite recent market volatility, investors remain broadly positive on the asset class. More than a third of respondents plan to increase their allocation to real estate over the next 12 months, compared with just 17% who intend to reduce exposure.
The survey also revealed a strong preference for sectors supported by long-term demographic and structural trends. While data centres emerged as the most attractive individual sector, reflecting continued enthusiasm around AI and digital infrastructure, residential living sectors collectively attracted the greatest investor interest. Build-to-rent, purpose-built student accommodation, later-living, co-living and residential investments all featured prominently, highlighting continued confidence in sectors underpinned by housing demand and demographic change.
Investor concerns have also evolved. Tax policy and fiscal unpredictability emerged as the industry’s biggest challenge over the next 12 months, followed by geopolitical instability and planning delays. This represents a shift from previous years, when planning reform and development constraints dominated industry discussions.
Daniel Austin, CEO and co-founder of ASK Partners, commented: “Compared with last year, investors appear less concerned about a single issue such as planning reform and more focused on the broader investment environment, looking for confidence in the direction of travel before increasing allocations. The survey suggests capital remains available and interested in UK real estate, but investors are looking beyond the next interest rate decision and focusing on long-term fundamentals, political stability and sectors where demand is supported by structural trends.”
The survey suggests the market has entered a new phase. Rather than waiting for a single catalyst, investors are positioning for a gradual recovery, with capital increasingly directed towards sectors supported by resilient income, demographic demand and long-term fundamentals.