Tips for Adding Value to a UK Buy-to-Let Investment in 2024

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How to Add Value to a Buy-to-Let Property

The aim of all buy-to-let opportunities is to grow capital. As such, most investors will want to know what they can do to ensure their properties increase in value as time passes.

While house prices tend to go up the longer you hold them, there are numerous things you can do to ensure that you enjoy the highest level of capital appreciation and the best rental yield.

Today, we are looking at some critical things you must consider to ensure you add value to a property in 2024.

Read on for more information.

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Look for Energy Efficiency

Buyers and renters prioritise properties with high Energy Performance Certificate (EPC) ratings, often paying more due to potential energy bill savings. A survey by OVO found that 66% of prospective homebuyers prioritise energy efficiency.

New-build homes can be significantly more energy-efficient, employing technologies like heat pumps and triple-glazed windows. This makes them appealing to property investors for their broader market appeal and longer-lasting EPC ratings.

Despite recent government changes to EPC regulations, investing in a new build with a good rating ensures compliance with potential future regulations.

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Purchase in Areas with Good Capital Growth Potential

One of the cornerstones of properties accumulating value over time is the area’s capital growth potential.

Look to forecasts and area analyses to ensure you buy properties in areas with good capital growth potential.

Keep an eye on the Savills Residential Market Forecast to see how your region is predicted to perform over the next five years.

For example, the most recent Savills forecast suggests that the UK will see capital growth of 21.6%, while the North West and the North East will see greater growth than that. As such, you may want to focus your property portfolio on those areas. That way, when you come to sell your property, it will potentially grow in price more than properties in other regions.

Further Reading: Check out our guide to house price predictions for the next 5 years for more information!

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Look for Properties in Areas on the Brink of Regeneration

As a buy-to-let investor, you may rule out properties in specific areas because the average property price is too high. One thing you should look for is areas on the brink of regeneration.

Look at the Baltic Triangle in Liverpool as an example. Twenty years ago, that area was a collection of unused warehouses. Thanks to ongoing regeneration efforts, it has become one of the coolest neighbourhoods in the world (per Time Out) and attracts businesses, start-ups, and—most importantly—tenants who want to be a part of a hip and vibrant community.

With further regeneration plans – a new train station, community park, and a host of stunning residential developments – to boost the area further, areas like this will help your property skyrocket in value.

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Consider Buying Properties Off-Plan for Quick Capital Appreciation

Off-plan property investment has the potential to see significant appreciation before completion. Investors can secure these properties at lower prices during the planning or construction phase.

As the development progresses, demand often increases, driving up prices. Additionally, off-plan properties may benefit from market growth, improvements in infrastructure, and regeneration efforts surrounding the development.

This combination of factors can result in substantial capital appreciation for investors.

Why Should You Invest in 2024?

For many buy-to-let investors, 2023 was a year to forget. Rising inflation and interest rates caused many landlords to put their plans on the back burner.

However, 2024 could represent a change in fortunes, with rising buyer demand and property prices.

In addition, mortgage rates are more affordable than they were through large parts of 2023, and property prices stagnated slightly, according to the most recent Halifax House Price Index. Those figures showed a -1.0% decline from February to March, ending a series of price rises in 2024.

This suggests that good-value properties are still available in the property market. A recent study also showed that rents will continue to soar for the next three years. This could mean strong yields on more affordable investments in 2024 for buy-to-let investors.

To learn more about UK property investment, check out some of our recent buy-to-let guides:

Tips for Adding Value to a UK Buy-to-Let Investment in 2024