Two-thirds of private landlords in the UK are optimistic about how their property investments will perform in the coming years – but political uncertainty is a notable challenge.
New research from Butterfield Mortgages, based on an independent survey among 2,000 UK adults., found that of those who own buy-to-let properties, 65 peer cent are confident their property investments will perform well in the future – both in terms of capital growth and rental returns.
Looking to 2024, 32 per c ent think house prices will rise next year, while 47 per cent believe the Bank of England’s base rate will start to come back down.
The research also highlighted the political challenges facing landlords.
More than three-fifths of those surveyed said they want greater consistency and clarity over government policy that affects landlords. For instance, 45 per cent had made EPC upgrades to their properties since 2021, only for the new energy regulations for buy-to-let properties to be scrapped in September this year.
Reflecting the demand for consistent policy from the government, half of private landlords said they will await the outcome of the next general election before deciding how to manage their property investment portfolio.
The firm’s chief executive – Alpa Bhakta – says: “After a turbulent two years from both an economic and political perspective, it is noteworthy that two-thirds of UK landlords remain optimistic about how their property investment will perform. But our research also shines a light on the challenges they face.
“Clearly, most landlords do not expect house prices to immediately return to growth in 2024, even if the base rate does start to come back down. Moreover, inconsistency in government policy appears to have resulted in a degree of hesitancy among private landlords, with many likely to sit tight and await the election outcome so they can gain greater clarity on what reforms and regulations might be introduced in the next parliament.
“It will be interesting to see how the political parties approach the property market in their election campaigns next year.”
