The study commissioned by Rathbone Investment Management surveyed over 1,000 UK investors and 500 high-net-worth individuals.

The recent changes introduced by the government to the tax treatment of buy-to-let investments over the past few years and the introduction of new regulations by the PRA affecting portfolio landlords, have led to a number of investors now re-evaluating the cost-effectiveness of property as an investment.

By comparison, of those investors with over £100,000 of investible assets, just 38% don’t view property as a good investment.

A quarter of the high-net-worth investors surveyed currently owned buy-to-let properties, but just 7% planned to increase their portfolio.

A quarter of the high-net-worth investors (25%) said that they had accumulated their wealth through property, while 17% currently had investments in private real estate, 8% in commercial real estate and 5% in land.

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“Recent changes to the tax and regulatory treatment of buy-to-let has caused investors to take a step back and assess the viability of these investments,” said Robert Szechenyi, investment director at Rathbones (pictured above).

“While it’s understandable that property – and in particular residential property – has been a popular investment in the past, it’s now making less and less sense.

“Not only are the returns now being impacted by an increased rate of tax, but they can also prove high-risk investments due to a lack of diversification.

“Property investments require a large amount of capital to be held in one single asset and landlords will often hold a number of properties within one region.

“Investors who are looking to invest in property, should make sure to assess their risk appetite, look at all alternative options and make sure this property is held within a well-diversified portfolio of investments.”