Investors left waiting for planning reform and incentives but majority plan to increase real estate allocation

However, despite these pledges, ASK’s research shows the biggest challenges facing the UK real estate sector over the next 12 months remain planning system delays, political uncertainty, and fiscal unpredictability. In order to support and grow the UK real estate market, investors believe the three main priorities should be to reform planning regulations and processes, offer tax incentives for investors and developers and attract international investment into UK property. 

Despite concerns with the government’s first year and persistent structural challenges, the majority (51%) of respondents plan to increase their allocation to real estate over the next year, with data centres, warehousing & logistics, and later-life housing identified as the greatest opportunities. 

The research also found that real estate debt is seen as an effective way to access these property investments, offering attractive risk-adjusted returns, strong collateral backing (secured against real assets), regular income from interest payments, and lower volatility compared to equities. 

Daniel Austin, CEO and co-founder at ASK Partners, said: “After a year under the new government, investors remain frustrated by the lack of meaningful planning reform and the limited incentives available to drive development. Our research shows that planning delays, political uncertainty, and fiscal unpredictability continue to act as major barriers – despite manifesto pledges to accelerate housebuilding. Nevertheless, over half of investors plan to increase their real estate allocations over the next 12 months, signalling confidence in the sector’s underlying fundamentals. Unsurprisingly, given the rapid global digitisation and growth of AI, data centres are expected to offer the greatest investment opportunity of all asset classes. Warehousing and logistics, and later-living housing also stood out as particularly attractive prospects along with build-to-rent, co-living and student accommodation. Real estate debt remains in high demand from investors seeking stable income, capital preservation, and a degree of insulation from wider market volatility. 

“To truly unlock the potential of the UK property market, investors want to see planning reform prioritised, alongside tax incentives for developers and policies that attract international capital. Delivering on these fronts would help accelerate development, tackle the housing crisis, and ensure real estate continues to drive economic growth rather than hold it back.” 

ASK has a loan book of c. £2 billion and has an adaptability as a lender that has enabled it to maintain lending activity across economic cycles without capital loss. It offers HNW private client investors a range of real estate debt opportunities via an online platform which enables them to tailor a portfolio according to their risk appetite and create diversification across sectors and locations.