UK investors lose faith in the Government’s handling of Covid-19
Over half of UK investors have lost confidence in Boris Johnson’s government based on its handling of the Covid-19 pandemic, new research from FJP Investment has found.
The investment firm commissioned an independent survey of more than 900 UK-based investors, all of whom have investments and savings in excess of GBP10,000, excluding the value of their residential property and workplace pensions.
It found that 54 per cent of investors have lost confidence in Boris Johnson’s government based on its handling of the Covid-19 pandemic so far. For those based in London, this figure jumps to 62 per cent.
FJP Investment’s survey also revealed that 57 per cent believed more financial relief is needed to support UK businesses affected by Covid-19. This comes following the news that the UK has officially entered its first economic recession since 2009.
When it comes to real estate, investors feel more needs to be done to support homebuyers and property investors beyond the current measures that are in place. Over half (54 per cent) said they are in favour of extending the mortgage payment holiday relief scheme beyond 31 October 2020.
Elsewhere, 42 per cent believed the Government needs to offer additional support to homebuyers and property investors beyond the stamp duty holiday, which is currently in place until 31st March 2021. Despite this, a quarter (24 per cent) of the investors surveyed said they are planning on buying one or more properties to take advantage of the stamp duty holiday – this figure rises to 43 per cent for those aged between 18 and 34.
Jamie Johnson, CEO of FJP Investment, says: “Today’s research shows that investors are clearly worried about the long-term financial consequences of the pandemic. News of the UK entering a recession will likely have shaken confidence further, too.
“One of the key findings is that faith in Boris Johnson’s government is waning. While there is support for the financial support schemes and economic stimuli that have been introduced so far, investors feel that much more must be done if the UK’s post-pandemic recovery is to be successful.
“The pressure is very much on the Prime Minister and Chancellor Rishi Sunak to allay these concerns. Boosting investors’ confidence will be vital in order to inject life back into different financial markets and bolster GDP.”