Some sectors of the property market in the UK are undergoing a fundamental change which will impact many investors.
The change started with the retail sector long before the current COVID-19 crisis.
The move to online shopping has devastated the high street and local councils have been slow to adapt and have not relaxed planning rules and reduced business rates to sustain the market.
The trend of working from home is here to stay, and this will have an impact on the need for office space in the future.
Few individual investors have direct ownership of retail and office properties. However, many have invested in commercial property funds in various forms as a way of including property in their portfolio.
The alternative, of course, is a direct investment in the residential sector, for example.
If you have invested in a property fund or REIT, take a look at the underlying assets and decide whether the medium-term prospects for the sector they are in are sound.
There is nothing wrong with investing in a well-managed property fund. It is all about the sector the fund invests in.
