2024 could be the year of the property investor amidst decreasing mortgage rates, rising optimism, and the potential for a Spring Budget boost. We've already received numerous enquiries about the evolving buy-to-let market, so here are answers to the most common questions:
Q. What's the sentiment among landlords?
A. Recent surveys show positive sentiment in the buy-to-let market. Together's survey found 68% of landlords are optimistic about 2024, with a third planning to expand their portfolios. Similarly, The Mortgage Lender's survey revealed 74% of landlords are confident about the property market's future, with 27% very confident. Among them, 71% feel confident about their own buy-to-lets, with 78% of portfolio landlords feeling the most secure.
Q. Will the Spring Budget benefit landlords?
A. The upcoming Budget could improve the purchasing landscape, being the last before the General Election. Predictions include changes to the Stamp Duty Land Tax (SDLT) system, possibly making property acquisition cheaper. We'll be monitoring the announcement for any changes, which could lower costs for property investors.
Q. Are rents expected to rise in 2024?
A. Rents have been rising steadily, and despite a projected cooling of the rental market, Zoopla forecasts UK-wide rent increases of 5% to 8%, with strong tenant demand persisting.
Q. Will there be capital appreciation in 2024?
A. Property price rises are anticipated, with inflation dropping, wage growth strong, and mortgage rates decreasing. Forecasts have shifted positively, with potential value rises of 3%, reinforced by any positive news in the Spring Budget.
Q. Are mortgage rates cheaper in 2024?
A. Yes, mortgage rates have decreased across the board, including buy-to-let mortgages. Some lenders are offering sub-4% deals, such as The Mortgage Works' two-year fixed-rate product at 3.54%, benefiting new landlords and investors.
For further inquiries about the current rental market and seizing opportunities, feel free to reach out. We provide assistance with all aspects of buy-to-let, from selecting the right investment property.
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