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Good Time for Buy-to-Let Investment, Expert Says

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    Buy-to-Let Investors Could Find Good-Value Properties in the UK Housing Market

    Following the latest Halifax house price index, buy-to-let investment experts have waded in on whether or not now is a good time to buy property. The Halifax HPI was less emphatic than previous iterations earlier in the year, but that may tempt landlords into the market in search of good value properties.

    Let’s look at the information in more detail.

    Read More: Thinking about buying property in the coming months? Check out our guides on long-term property investments and the best things to invest in for more helpful insights.

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      Should Buy-to-Let Investors Jump Back into the Market?

      The latest Halifax house price index results reveal a mixed picture for the housing market. Landlords should view this as motivation to expand their portfolios.

      Halifax says average UK house prices increased by 2.0% in March compared to the previous quarter. However, annual growth slowed to 0.3% from 1.6% in February. On the other hand, the price of a UK property dropped by 1.0% or £2,908 compared to the previous month. Currently, the average property costs £288,430.

      Yasin Patel, co-founder of investment specialists Autarky Sukuk, sees this as an opportunity for landlords to capitalise on. He said: “House price growth experienced a slight cooling in March, but annual prices are still at healthy levels considering the turbulence of last year. Inflation is proving a tricky beast to fight and this is prompting fears that the Bank of England will be much slower to lower interest rates, which keeps the cost of borrowing at more punitive levels.

      “Landlords should be assured that now is a good time to buy. Slowing house price growth brings more opportunities to grab a bargain. With rent rates at record highs, the potential yield that investors can get on returns is still attractive. The next few months will be crucial for the industry, as the warmer months are typically some of the busiest in the calendar year. If we see this slowdown continue, we may need to be more realistic about how big the great property bounce-back will be.”

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      Will Buyers Head Into the Market Amid Slowing Prices?

      While Patel suggests that now could be a good time for investors to invest in buy-to-let property, data shows buyers have been increasingly busy during 2024. Research suggests buyer demand has continued to rise in the first quarter (Q1) of 2024.

      According to analysis by agency comparison website GetAgent, buyer demand increased by 1% in the first three months of 2024 compared to the final quarter of 2023.

      GetAgent’s Hotspots Demand Index tracks homebuyer demand across England quarterly. It measures current demand by calculating the proportion of listed properties already sold, subject to contract or under offer, as a percentage of all listed properties for sale.

      The latest index indicates that 42% of all homes listed for sale across England found a buyer in Q1 of 2024. This reflects a 1% rise in buyer demand compared to Q4 of 2023, bringing the market back to the same levels observed during the first quarter of 2023.

      For more buy-to-let insights, check out some of our helpful area guides, including:

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      Dale Barham

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      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.