UK property owners and directors of property companies are looking to expand their portfolios in the short term, but believe that finding funding could be problematic, according to a new survey by Crowe Clark Whitehill, the national audit, tax and business advisory firm.

Tough funding conditions was unsurprisingly cited by survey respondents as the number-one issue facing the UK property market in 2011 and this would continue to be a very serious problem in the upcoming 12 months.

The survey, which was based on feedback collated at a series of national property seminars hosted by Crowe Clark Whitehill in November 2011, revealed that property seminar attendees were primarily concerned about how they would obtain funding for new and existing property projects. Internal cash flow problems and the inability to sell assets outside London were also cited in that order as major challenges.

The December research also laid bare concerns that the UK property market apart from Central London, would continue to stagnate over the short term, with respondents, for the most part property developers, investors, traders as well as property market advisers, expecting the volume of property transactions to continue to flatline in the face of stagnant property prices and a funding freeze.

In sharp contrast to this negative outlook, respondents said they expected their relationship with funders to improve over the short term. The data also revealed that while delegates believed that the Coalition Government was implementing the right economic policies for the country, not enough was being done to stimulate the housing market.

Interestingly, the survey showed a clear divide between attendees, with just
over half of respondents agreeing that the UK tax regime was factored in to their
property investment decisions, whilst the remaining participants did not
think it relevant.