June 18, 2024

South West News

South West News from Gloucestershire to Cornwall

2023/24 Upcoming UK Landlord Trends

The UK property market has always been an ever-evolving landscape. With each year, we see shifts in patterns be it through regulations, economic changes, or emergent societal needs. As we peek into the forecasts for 2023/24, there are certain landmark trends on the horizon for UK landlords. Notably, the aftermath of ‘panic selling’ by many landlords is sure to have ripple effects across the sector. Let’s explore.

Panic Selling and Its Impact

Jason Harris Cohen, MD of Landlord Buyers has been observing closely and says “The rental market’s recent landscape has seen a surge of landlords selling their tenanted property, sometimes even at a net-loss. Dubbed ‘panic selling’, this movement stems from increasing regulations, tax implications, and the residue of challenges from the pandemic. This massive selling spree could potentially lower property prices due to an influx of available properties, making the buy-to-let market more accessible for new entrants. “

 

However, it’s not merely about lower prices but understanding the broader context of the property market to capitalise on these opportunities.

Rent Increase Projection

As the supply and demand equation wobbles due to panic selling, rents are projected to rise. It’s anticipated that UK rents could experience an increase of around 11.4% by 2024. This could be a two-edged sword. On one hand, landlords with a stable property portfolio could benefit from increased monthly income. On the other, tenants may face challenges in affordability, leading to potential vacancies or shifts towards more affordable regions.

Emphasis on Quality

The upcoming trends signal that landlords can no longer rest on the laurels of property ownership alone. With increasing competition and a potentially shrinking pool of tenants willing to pay higher rents, the emphasis will undoubtedly shift towards quality. This could mean properties that offer more space, better amenities, or are energy efficient. Upgrades and renovations might become the norm, rather than the exception.

Rise of the Regions

With the ascent of remote working and the continual push of urbanisation, more people are looking outside the major cities for residence. This exodus from city centres offers landlords a chance to explore regions that were previously overlooked. Investing in suburban or semi-urban areas, especially those with good connectivity, might yield favourable returns in the coming years.

Technology Takes Centre Stage

While this trend isn’t new, its importance can’t be overstated. As more of the rental process moves online, from property viewings to contract signings, landlords need to be tech-savvy. Embracing technology will not just be about convenience but a necessity to stay competitive. This includes virtual tours, efficient property management systems, and seamless online payment options.

 

The UK landlord scene for 2023/24 is shaping up to be a mixed bag of challenges and opportunities. The aftershocks of panic selling will continue to reverberate, but adaptive landlords can navigate these ripples effectively. By staying informed, being open to change, and focusing on quality and tenant needs, landlords can not only weather the storm but thrive in it. As always, staying ahead of the curve and adapting swiftly will be the name of the game.