Whilst the temperatures of this summer soars to all time highs, the number of landlords buying property to expand their portfolios has not.
An increase in first time buyers according to the trade lending body UK Finance, suggests that the decline in landlords could lead to a surge in rents, as the available stock of rental properties declines and competition from tenants becomes harder.
Brian Murphy, Head of Lending for Mortgage Advice Bureau commented: “If investors are currently less active on the purchase side, the fact that those taking their first step on the ladder are purchasing available stock may help to ensure that increased availability of properties at entry level doesn’t cause overt downwards pressure on pricing, thus keeping the market stable in line with the general direction of travel for 2018 so far.”
Moreover, Chancellor Phillip Hammond is expected to announce a tax incentive for current landlords to sell their properties to tenants in the upcoming Autumn Budget.
Given that on paper, the market seems to be turning against landlords in the current state, does that mean now is the worst time to invest in property?
Far from it. In fact should the tax incentive be initiated during the budget, it could lead to a decline in active investors in the market offering even less competition at purchasing buy-to-let properties.
The demand for rental properties will only increase more as the available stock declines further, with the affordability of renting far more appealing to some than the cost of becoming a homeowner.
Abode remain consistently active when observing the property market, knowing when and what our landlords and investors should be buying despite any uncertainty surrounding the property market. If you’re looking to invest in Tameside, Manchester or the North West, get in touch for free property investment advice.