Property Investment Trends 2023

Trend 1: Investing in Off-plan Property

The rising interest rates have been financially punishing for buy-to-let property investors, as buy-to-let mortgages already have higher rates than a standard residential mortgage.

Because of this, property investors are doing what they can to avoid buy-to-let mortgages, and off-plan property has provided one alternative financing solution.

Firstly, off-plan properties sell for less than the market price, as they are still in the planning or construction phase, making them more affordable.

Secondly, investing in an off-plan property means investors can use payment plans rather than apply for a buy-to-let mortgage. This means they can pay in affordable chunks and won’t have to cough up the total price of the property until the project is completed.

New builds are generally rising in popularity, as they are more attractive to renters and are usually more energy efficient, future-proofing them from any net zero government measures. But financial flexibility, without needing a mortgage, is driving this trend even more towards off-plan property for the rest of 2023.

Confused about any of these terms? Learn more with our updated Off-Plan Development guide.

The serviced accommodation market is another property sector that is growing fast in the UK. Serviced accommodation consists of a fully-furnished property with added amenities such as housekeeping and WiFi and basically everything a tenant may need for a short-term stay.

This type of property is rising in popularity with buy-to-let investors as there is more flexibility than a traditional rental property. Serviced accommodation is perfect for short-term lets, meaning an investor can easily charge different rates depending on the season, and profits can be much higher, provided the property is consistently booked.

You can learn more about how Serviced Accommodation works with our free guide.

Investors also don’t have to wait long periods for tenancies to end in order to sell the property.

But running costs are usually higher as a fully furnished property requires more upkeep, and the cost of provided amenities must be considered. Local restrictions on short-let properties can also be a problem, such as London’s 90-day rule.