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.”
Discover More: Ready to start renting out a property for the first time? See our guide on how to start a property portfolio.
