The spike in the real estate market is starting to push investors towards startups and small businesses
Investment habits have changed rapidly in recent years in the UK, with individuals relying on investments to provide them with passive income.
Real estate investing has been considered a stable investment over the past decade.
The housing market in the UK has seen substantial growth over the past few years, which has made real estate investing popular with investors over the past few years.
With recent news showing the average UK house price rose by £8,000 in February, the biggest month-on-month increase for 20 years, this could be seen as a smart investment for investors to make throughout 2022.
However, experts predict that UK property price growth will level off throughout the year, combined with global supply chain issues and a lack of supply, the UK property market looks poised to endure a volatile year.
Rival to a stable real estate market
It seems that a credible rival is increasingly visible on the horizon. Over the past few years, investing in small businesses has become an increasingly attractive investment opportunity for many people looking to fuel their business growth and take advantage of government tax incentives.
The housing market, however, appears to have been affected by its own success, with average house prices at all time highs, making it harder for investors to start investing in property.
While the property market has grown steadily over the past few years, the small business landscape has grown substantially in the UK.
“Investing in SMEs is increasingly a serious option for many investors in the City, offering them tax advantages and a realistic chance to maximize their returns,” said Luke Davis, CEO of IW Capital in London.
Additionally, Davis said AM City this afternoon “the pandemic has impacted the UK in ways we could never have predicted, it has created a new class of investor, an individual who cares not only about the performance of their investments, but also support a new future for small business growth.
Davis seems to be right.
In 2021, there was a record 319,000 new businesses registered in the UK, with the number of retailers in the UK increasing by 15%, with the number of small businesses in the UK now standing at 5.5 million, with recent research showing that two-thirds of the UK workforce want to start their own business.
“It demonstrates a continued desire, caused by the pandemic, for individuals to set up their own businesses in the UK.
With 16% of UK investors looking to back start-ups and newly created businesses, it looks like they will have a platform to continue the success and progression of their businesses throughout 2022.
“Small businesses represent an alternative investment prospect for investors.”
The community and investors are ready to support small businesses with small businesses too eager to maximize these opportunities.
“Property investing has been seen as a stable investment over the past decade, but with the UK small business environment growing substantially, small businesses look set to continue growing through 2022. “, he pointed out.
Finally, the so-called Enterprise Investment Scheme could also be an important trend throughout 2022.
“EIS can be said to offer a win-win situation for investors and small businesses, providing much-needed investment to SMEs to provide them with a platform for growth, while providing investors with tax breaks to encourage this investment. “, explained Davis. .
Small businesses and SMEs across the UK have benefited enormously from EIS over the past 25 years, fueling growth and job creation on an impressive scale.
“SMEs are getting so inventive and versatile with their businesses and ensuring they are at the forefront of the UK business scene.”
“Small businesses are an indispensable part of the UK economy and the outlook for the festive period is a reward for their consistent hard work,” he concluded.