Maximize Profits in 2024: How Lower Property Prices and Increased Rents Boost Buy-to-Let Appeal

New Property Opportunities Falling Property Prices And Higher Rents Make Buy-to-Let More Attractive In 2024

In recent years, the landscape for buy-to-let investors and property owners has posed significant challenges, marked by soaring interest rates and escalating energy expenses. The introduction of Section 24, elimination of wear and tear allowances, heightened stamp duty, and increased regulatory measures have collectively burdened buy-to-let investors, necessitating adaptation to a shifting and demanding market environment.

Property prices peaked, then fell back as interest rate rose, and this year rents have gone through the roof as demand exceeds supply.

 

Rents have reached record highs in most parts of the UK, and of course landlords are getting the blame.

 

In their defence, landlords have had to pass on the costs that the government have imposed on them with legislation such as section 24. The policies of the treasury and central banks have caused economic chaos, higher interest, rates, higher energy costs, and a shortage of properties, none of which are the landlords fault. 

 

Could 2024 be the turning point for property investors?

 

Prices have fallen in some areas by 20% while rents have doubled over the last few years, all of which is making buy to let investing look more attractive than it has done for three years.

 

In one area I’ve been looking at, three bed council house, which was selling for as much as £180,000, can now be picked up for £150,000 or less.

 

At the same time, rents have increased in a few short years from £600 per month to £1200 per month.

 

In other words, property prices have fallen by almost 20% while rents have doubled. 

 

Even with mortgages at five or 6%, buy to let investing is starting to look more attractive.

 

Furthermore, prices could fall again in 2024, as economy slows and 2 million people reach the end of a low fixed rate mortgage. 

 

Institutions like Lloyds bank and Blackrock are already circling in the sky, waiting to pounce on cheap property.

 

Mortgage arrears are up by 44% on a year ago to £18billion and the Bank of England has issued a lending warning.

 

In the case of Lloyds bank, which is probably the largest lender in the UK, it seems like a bit of a conflict of interest to be both repossessing Properties, and buying them through another arm, although we don’t know if that is their intention.

 

Interest rates should start falling over the next five years as the economy goes into recession and inflation comes down to normal levels. Mortgages will be cheaper offering better profits for landlords.

 

There will be opportunities in 2024 for the investor who is prepared to be patient and seek out good deals.

 

If you’re affected by section 2024 and would like to know more about the background to this landlord tax and how best to deal with it, click here for more information.

 

See: – Transfer Property Into A Limited Company Without Paying CGT or Stamp Duty ⁠https://youtu.be/mtGq7WaVxLA ⁠

If you are suffering from section 24, join us for a free landlord Sec.24 tax seminar live in London this month.

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