What does 2020 hold for the UK buy to let market?

Updated on:
28 February, 2020

Interested in the UK buy to let market? A new year always brings fresh speculation over the outlook for UK property. But for the first time in several years, are the signs beginning to turn positive?

Difficult times for the UK buy to let market

Sluggishness of the UK property market has been widely reported in the last three years, with political uncertainty and the ongoing Brexit saga draining confidence from investors. This is especially true at the higher end of the market, where price growth has been a real issue.

At the same time, many landlords have felt a growing strain from increased regulatory pressure. One recent report highlighted a 32% rise in rules governing landlords, and many in the industry feel these new regulations have disproportionately penalised good landlords while failing to punish those acting wrongly.

Many of these changing regulations have had a financial impact. For example, the Tenant Fees Act of 2019 prohibited landlords and agents from charging certain fees to tenants – such as referencing or inventories. This cost has now been passed on to landlords, impacting their bottom line.

Altogether, some landlords have been left wondering if the UK buy to let market is worth the bother.

Positive sentiment seems to be returning with property prices off to a good start

Numerous reports indicate that the buy to let property market is recovering. For a start, the wider UK property market has got off to a good start in 2020, no doubt resulting from the certainty created by the result of 2019’s general election.

Sentiment around buy to let property specifically is also positive. A recent survey found that 75% of respondents back buy-to-let property as a solid investment. In this survey, Brexit uncertainty was cited clearly as a reason to withhold from buy to let investment – and as this uncertainty dissolves, we should see more action in the market.

It’s also expected that rents will rise over the coming years, given strong demand for high quality rental property throughout the UK. Likewise, regional investors will be pleased to see that growth in the North and the Midlands is continuing apace. While in London, things finally seem to be picking back up after a difficult few years.

Are you looking for a buy to let mortgage?

All in all, the signs look positive for the UK’s buy to let property market. If you’re looking to secure a mortgage or refinance an existing asset, speak to one of our expert advisers today to discover what you could achieve.

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