Skip to content

01 Dec, 2023

BTL Investors Ready to Trust in the UK Housing Market

We have some exciting new buy to let deals available right now. Don't miss out and secure the best Liverpool and Manchester investment opportunities, with projected rental yields of 10-15%!

    Research Shows Landlords Have a Positive Outlook on Property Investment in Q3 2023

    In another sure-fire sign that the housing market is past the worst of the current economic climate, a Paragon Bank survey has shown that buy-to-let landlords have regained their confidence in the private rented sector.

    With inflation falling and mortgage lenders dropping their rates, buyer activity is primed to go up, particularly with low property price growth and rents at record-breaking levels.

    Let’s look at the research in greater detail.

    Norfolk

    How to Build a Property Portfolio, Get Started Now!

    Tips on how to start building your property portfolio with tools for success.

    What Did the Survey Say About Buy-to-Let Investors in the 2023 UK Housing Market?

    In a survey conducted by BVA BDRC for Paragon Banks, Q3 2023 showed improved confidence in the UK property market compared to G2 2023 – the uptick is partly thanks to a more promising economic outlook for 2024.

    According to the survey, 49% of landlords viewed the rental yield outlook as good or very good for Q3. This was 16% better than in Q2. In addition, there was an 11% increase in landlords’ confidence in their lettings business moving forward.

    The research revealed an 8% increase in confidence in the private rented sector and a 6% increase in capital gains expectations.

    Whether you are looking for a buy to let in Stoke or a property investment in Birkenhead, landlords do need to research the market influences like the above.

    Couple signing up rental contract with the estate agent

    Property Deal of the Week!

    £22,377 ASSURED net rental income on luxury 2-bedroom townhouse new to the market.

    Why Do BTL Landlords Have New Confidence in the Market?

    The study surveyed 800 landlords, though their optimism in the UK economy is less than their confidence in the housing market – increasing by 2% from Q2 to Q3.

    The survey results show landlords are willing to remain in the lettings market, though expectations for capital gains are understandably muted. After all, property prices are expected to decline further in 2024 before increasing in 2025 as the market enjoys an extended period of stability. We recommend reading our guide on investing in real estate in the UK which offers a good overview of some of the things to look out for.

    Inflation has fallen to 4.6%, and interest rates remain at 5.25%. Therefore, mortgage lenders have enough confidence to reduce their rates to stay competitive against other lenders. Thus, mortgages are much more affordable than at the start of 2023.

    In addition, rental growth is at an all-time high, with the average UK rent rising to £1,279 in November, according to the Homelet Rental Index – an 8.9% year-on-year increase. With higher gross rental yields available, particularly in areas like Liverpool (which has historically good-value property prices compared to the rest of the country), it’s no wonder landlords are feeling more optimistic about the state of the property market. Whether you are looking for the best way to invest 50K or the best London property investment it is always worth researching the market place.

    Couple of homeowners getting key to new house apartment from realtor, happy real estate owners make purchase deal, family mortgage investment and buying property concept, close up view of hands

    Huge £25,000 Discount Available Now. Final Unit Remaining!

    Request an info pack today for this 2-bed apartment with an astonishing £25,000 discount applied.

      How Did Paragon Bank React to BTL Landlord Confidence in the UK Housing Market?

      Paragon Bank managing director of mortgages Richard Rowntree had the following to say about the survey results: 

      ‘It’s great to see a lift in optimism amongst landlords, reflecting some of the stability that we’ve seen return to the market and economy more broadly. 

      Landlords play a vital role in the UK’s housing provision, so it is important that they feel confident in the investment environment, particularly at a time when demand continues to outstrip supply. Although there is still work to be done on all sides as we work to improve the PRS for both tenants and landlords, we’re encouraged by signs that the value of private investment is being recognised by the government. I imagine that recent policy announcements will have had a positive influence on how landlords see the prospects for the sector and their businesses.’

      He continued: ‘It’s also worth noting that this research was undertaken before it was announced that the removal of Section 21 would be delayed until court reforms and a new ground for possession for student investment property landlords was created. These are both significant changes to the Renter’s Reform Bill that will likely be welcomed by landlords so could add to the more positive outlook.’

      Why not take a look at some of the available Buy to let properties in Liverpool or read more about off plan property investments.

      Stack of cards with a question mark printed on,
      Disclaimer
      Avatar photo
      Author

      Dale Barham

      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

      Why Choose RWinvest?

      Here are three reasons to choose RWinvest for your next UK property investment.

      We have over 2,000 five-star Trustpilot reviews

      Multiple Award Icon

      We're a multi-award winning investment company

      We offer investments in the best buy to let areas

      Contact Us

      Contact Us

      Want to Get in Touch?

      Fill in the form to contact us today and a member of our award-winning property team will be in touch to help.

        I can honestly say they have put my mind at rest from day one answering all my questions I had , true professionals, I am not experienced in buying off plan or for a rental income but I have to say the process has been smooth from sales to Chloe in client care and now I’m handed over to the final stage for the site visits
        I feel very relaxed and happy with how amazing the team have been. I I can’t wait now to see the end built ! Thanks 🙏

        Kelly Webber

        Google Reviews Logo

        I have had the pleasure of experiencing exceptional customer service from RWinvest. Adam and Michelle were remarkable and were exceedingly supportive in facilitating the acquisition of two properties in Liverpool, at "The Gateway." Their guidance was instrumental in the purchase of the properties and I express my utmost satisfaction with their assistance, and I am inclined to not only endorse but also consider any property advertised by RWinvest.

        Narendra Rai

        Google Reviews Logo

        I am very happy and satisfied with RWinvest. Their team was always responsive, supportive and friendly throughout my investment process. Thomas from RWinvest team was especially very supportive and he made sure that I have all the necessary information at the right time. He helped me with all my queries, and helped me to complete my investment process smoothly and with peace of mind.

        Babak

        Arrow left
        Arrow right
        UK