The content of the financial promotions on this website has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on these promotions for the purpose of engaging in investment activity may expose an individual to a significant risk of losing all of the property or assets invested.

Why it is time to diversify your portfolio with a property investment

Article

As a tumultuous couple of years draw to a close, many investors are evaluating their assets and thinking about how the UK property market will perform in 2022, and beyond. UK house prices have risen consistently throughout 2021, and forecasts suggest this is likely to continue next year – but for how long? If you’re considering diversification via property investments, now may just be the perfect time.

 

Why diversify your investment portfolio?

Diversification refers to investing in a range of assets that differ in sector or region. This provides you with some protection in the event of an investment failure, or an unexpected value drop in a certain area. If all your investments are similar or linked in some way, all your investments will be negatively affected should this happen. Diversification helps to minimize the personal financial impact of such events, in a nutshell.

While portfolio diversification has always been an important risk-mitigation strategy, the events of the last few years have made it even more essential for UK investors. Brexit began a period of widespread economic uncertainty, which was then intensified by the devastating impact of COVID-19. In such unstable financial times, it has never been a better idea to keep your eggs in separate baskets.

 

Why invest in UK property now?

Portfolio diversification is the goal but is property investment the best way forward? According to many investment experts, the answer could well be “yes”.

Property prices have climbed steadily since the housing market reopened, with demand from buyers reaching an all-time high, and supply, an unprecedented low. According to Savills, the first six months of 2021 saw an average house price increase of 5.6%. Despite much of this growth being attributable to the stamp duty cuts which ended in March, property prices are still on track to hit a total increase of 9% by the end of December. To put these figures in context, the total value of UK property transactions in 2021 is set to surpass £1.6 million, which is approximately 35% higher than the average from 2015 to 2020. Needless to say that so far, it has been a great year for property investors.

As mentioned above, the good news is that for the short term, at least, this trend appears set to continue into 2022. However, all signs do point to 2022 having a greatly reduced capacity for growth, all factors considered.

With a slowing down of price growth on the horizon, now is arguably the best time to seek out new property investment opportunities. Though all investments are risky, the gradual plateau in growth we are likely to experience over the next 12 months means that new investors, of late 2021 and early 2022, can take advantage of this potentially-lucrative market with relative confidence.

 

 

YOUR CAPITAL IS AT RISK IF YOU INVEST

Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about suitability of those investment opportunities. All investors should seek an independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee for future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).

 

 

 

Free Download

A guide to Property Investments 2021

Receive your complimentary Acorn Green Investment Guide

Please select the type of investor you qualify under:

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

  • I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000 or more. Annual income for these purposes does not include money withdrawn from my pension savings (except where the withdrawals are used directly for income in retirement).
  • I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more. Net assets for these purposes do not include:
    • the property which is my primary residence or any money raised through a loan secured on that property; or
    • any rights of mine under a qualifying contract of insurance; or
    • any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled; or
    • any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand this means:

I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-readily realisable securities; the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.

I am a self-certified sophisticated investor because, prior to the date of my ticking the "self-certified sophisticated investor" box, at least one of the following applies:

I am a member of a network or syndicate of business angels and have been so for at least the last six months;

I have made more than one investment in an unlisted company in the last two years;

I am working, or have worked during the last two years, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

I am currently, or have been in the last two years, a director of a company with an annual turnover of at least GBP1 million.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from someone who specialises in advising on non-readily realisable securities.

I declare that I am a Certified Sophisticated Investor for the purposes of the Financial Services and Markets Act (Financial Promotion) Order 2005. I understand that this means(1)

I can receive financial promotions that may not have been approved by a person authorised by the Financial Conduct Authority; the content of such financial promotions may not conform to rules issued by the Financial Conduct Authority;

by signing this statement I may lose significant rights;

I may have no right to complain to either of the following:

a) the Financial Conduct Authority; or;
b) the Financial Ombudsman Scheme; and

I may have no right to seek compensation from the Financial Services Compensation Scheme.

I am a Certified Sophisticated Investor because at least ONE of the following applies:

I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;

I have made more than one investment in an unlisted company in the two years prior to the date below;

I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least 1 million pound.

I accept that I can lose my property and other assets from making investment decisions based on financial promotions.

I am aware that it is open to me to seek advice from someone who specialises in advising on investments.

Important Regulatory Information

The content of this page has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purposes of engaging in any investment activity may expose an individual to significant risk of losing all of the property or other assets involved.

This document is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the ground that it is made to ‘investment professionals’ within the meaning of Article 19 of the Financial Services and Markets Act (Financial Promotion) Order 2005 (FinProm); persons believed on reasonable grounds to be ‘certified high net worth individuals’ within the meaning of Article 48 FinProm; persons who are ‘certified sophisticated investors’ within the meaning of Article 50 FinProm; and persons who are ‘self-certified sophisticated investors’ within the meaning of Article 50A FinProm. The attention of prospective Investors is drawn to the “RISK FACTORS” page of this website.
 
This website uses cookies to ensure you get the best experience on our website.  Read more