50% of Buy-to-Let Investors Will Expand Portfolios in 2023

Property News of The Month

 

As we welcome a brand new year, we take a look at the latest property predictions and what this means for international investors, as well as UK residents. There are a number of positive advancements when looking forward to both the rental market and investor activity in 2023, so read on to find out why now is still a great time to start earning more from your money.. 

Over 50% of Buy-to-Let Investors to Expand Portfolios in 2023

A new report shows property investors are looking to significantly increase their investment portfolios in the next few years.

For example, Finbri found that over 50% of property investors are planning to invest in 2023, with more experienced investors planning increased activity for the year ahead. 

FW Recommends: In uncertain times, savvy and experienced investors take advantage. Times like we are in now where there are motivated sellers and people are a little more nervous, this poses a great opportunity to negotiate great deals with sellers. 

Also, with it being the start of a new year, developers want to get off to a great start and are willing to negotiate on price more to get sales over the line.


Rental Market Boom

Rental Market Continues to Boom

Tenant demand continues to rise as a result of the increased mortgage rates and property prices, with many years of anticipated growth ahead. For example, the RICS residential survey reports that in January, tenant demand rose to its highest point in over 20 years.

FW Recommends: In the rental market, both capital appreciation and income growth are benefits that investors should be particularly aware of at the moment.

For example, on the rental market side, tenant demand continues to spiral, meaning property investors in the buy-to-let space are seeing increased bookings and high NET rental returns. This is particularly prominent in desirable city-centre locations such as Leeds, Liverpool and Manchester, with younger working professionals that want to be in the heart of the city.

We have seen this first hand with the FW Lettings team seeing increased rental rates of at least 10% offsetting the increases in mortgages rates, making still highly desirable to investors.


Mortgage Rates Decreasing

Currently, we are seeing a slight decrease in rates. This is positive because previously the rates were increasing every single day. This is bringing some stability and much needed confidence to the market.

The main issues we were facing were the increasing swap rates. Following the mini-budget, confidence in the market dropped and the rate of borrowing went through the roof quickly and the banks had to draw their products straight away.

FW Recommends: For more information, and to read the full article with our Mortgage Broker, click here.

Whether you’re looking to reach early retirement, saving for your children’s university funds, or would simply like to earn more from your money, property investment remains a fantastic way to reach your goals.

For more information about buy-to-let, short or long-term lettings, or to speak to one of our property specialists, please get in touch. We are more than happy to offer no-obligation advice and assistance at a time convenient to you.

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