Property investors remain optimistic about the year ahead, despite ongoing economic and regulatory challenges.

Research by specialist lender Market Financial Solutions found that more than half of the property investors it surveyed (53%) were confident in the outlook for their investments. In contrast just 14% were pessimistic.

This research covered those owning buy-to-let, holiday homes and commercial units.

However, investors were realistic about the challenges ahead. Less than two in five investors (38%) said it will be easier to manage their property investments this year compared to last, with over half (56%) concerned about the UK economy entering a recession. This research was undertaken earlier this month, before official figures confirmed the UK had gone into recession at the end of last year.

Of the investors who own BTL properties, 63% were worried about the amount and complexity of regulation, with 56% saying that increasing regulation is deterring them from investing in more BTL properties.

Market Financial Solution CEO Paresh Raja says the research shows how popular bricks and mortar investments remain, with 16% of the 2,000 people surveyed holding some form of property investment.

He adds: “We can clearly see that optimism far outweighs pessimism among property investors at present. Quite rightly, though, investors are mindful of the challenges impacting their property portfolios. Concerns over the now-confirmed onset of a recession loom large, while escalating regulation – particularly in the BTL space – is another concern.”

He adds: “It will be intriguing to see how the upcoming general election either eases or exacerbates these worries. As a lender, we know that people dislike uncertainty.  Greater clarity around the state of the economy and the future direction of housing policy would undoubtedly help people better manage their investment strategies in the short, medium and long term.”