UK Property Investors Remain Bullish in 2024

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More Than Half of Property Investors Are Optimistic About Their Investments

As we head towards the spring of 2024, buy-to-let investors continue to find footing in the UK property market.

After the doom and gloom of 2023, where many forecasters expected double-digit declines in property prices, investors are finding optimism in their property investments.

A recent study from Market Financial Solutions says as much, indicating that more than half of investors are confident in their assets. At the same time, less than 15% are pessimistic about the direction of the UK property market.

Let’s look at the research in more detail and figure out what this means for UK real estate investment in 2024.

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How Do Property Investors Feel About the UK Housing Market in 2024?

Despite ongoing economic and regulatory hurdles in the UK property market, research by Market Financial Solutions indicates that property investors in the UK hold a positive outlook for the upcoming year.

The specialised lender surveyed 2,000 UK adults. Results showed that 16% of respondents have invested in properties. Among these investors, 53% expressed confidence in the future of their investments, while only 14% expressed apprehension about the UK property market.

However, investors are not blind to the challenges ahead. 38% believe managing their property investments this year will be easier than last year. Additionally, 56% are concerned about the possibility of the UK economy slipping into a recession, a concern that gained traction earlier this month.

Regarding buy-to-let (BTL) property owners, the survey revealed further apprehensions. 63% expressed worries about the increasing amount and complexity of regulations.

Pro Tip: If you’re new to buy-to-let investment and want to ensure you get the most out of it, consider consulting with expert property investment companies.

However, those worries may not accurately reflect the current state of the market. For instance, certain buy-to-let markets are looking very promising for the following year. For example, the Savills Cross-Sector Forecast earmarks the North West buy-to-let market as one of the most potentially lucrative investment opportunities in the residential market. The region is expected to see returns of 9.2% during 2024.

Discover More: So, what exactly is a buy-to-let? Our resources provide you with the latest insights and analysis. Check out some of our top articles, such as our guides on the best thing to invest in right now and investment properties for sale in Bolton.

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Why Should Investors Feel Confident in the UK Property Market Moving Forward?

With more than half of property investors expressing confidence in the market, let’s look at why they are finding cause for optimism.

Firstly, 2023 was a disastrous year for property investment if the forecasts were to be believed. However, the market again showed resiliency by side-stepping any potential price crash. Some house price indexes showed that prices increased over 2023. Halifax noted a 1.7% increase between December 2022 and the same period in 2023.

Additionally, inflation and interest rates are becoming more manageable than 12 months ago. In the early stages of 2023, the country was still reeling from the COVID-19 pandemic and the economic side-effects of the Ukraine war and Liz Truss and Kwasi Kwarteng’s mini-budget.

Inflation has since fallen to 4%, while interest rates have stayed at 5.25%, with rate cuts expected at some point this year. This has led mortgage lenders to lower their rates, tempting many investors back into the market. With property more affordable than it has been in a while, coupled with rental growth expected to reach 6% in 2024 (according to Savills), it’s easy to see why property investors are trusting the market again.

With buyer and seller activity up according to the last Zoopla House Price Index and more firm pricing among current supply levels, it seems that the market has turned a corner for property investors looking to expand their portfolios.

Learn More: If you want to know more about buy-to-let investing, dive into some of our handy area guides, including our guide on the buy-to-let Rochdale market.

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.