How the market is warming up for landlords in 2024?
Whether you’re an experienced landlord looking for new investment opportunities or looking to take your first steps to becoming a landlord, the market is looking promising as we settle into 2024.
Let’s look at how the rental market is shaping up and how you can benefit from it as a landlord.
Rental prices are on the rise
One of the main reasons you should be feeling optimistic as a landlord is that rent prices are predicted to continue rising. According to Zoopla’s rental index, average rental prices increased by 9.7% across 2023, increasing income for landlords.* It is predicted that average rent prices will increase by a further 5% this year*, further maximising return on investment for landlords, who could use this added income to expand their portfolio or make improvements to their existing properties.
Mortgage rates have decreased
More positive news for landlords is the recent announcement that mortgage rates have decreased, making property investment more affordable. These days, it’s possible to get a 5-year fixed-rate mortgage below 4%, meaning you can obtain a better deal when investing. As banks fight for business, increasingly attractive deals are becoming available.
Better deals on buy-to-let mortgages will also appear, which will help you expand your portfolio and increase your rental income. With lower interest payments, a larger proportion of your rental income can be distributed towards property maintenance and upgrades to increase the value of your existing properties and enhance the overall profitability of your portfolio. You also have the option of refinancing your existing mortgages at the new interest rates, reducing your overall borrowing costs for the entire duration of the mortgage.
There is plenty of choice
Now is an opportune time to search for new properties to invest in, as there is currently a high volume of properties on the market. On Boxing Day 2023, over 10,000 new properties were listed on the market, which is the largest number of new listings in a single day since 2011.** With an abundance of properties to choose from, you can select those that align with your investment goals, budget, and target market.
This high supply of properties will allow you to diversify your portfolio and spread your investments across several types of properties. For example, you may decide to buy a larger property and convert it into a Home for Multiple Occupancy (HMO), which often produces higher rental yields than regular lettings.
How an estate agent can help you
If you’re looking for properties to invest in, an experienced estate agent will conduct a thorough market analysis to understand the trends and dynamics affecting property prices in your area. This knowledge will allow you to set the right rental price, maximising your rental income while remaining competitive in the market.
Additionally, an estate agent will identify strong investment opportunities and negotiate a competitive price for any properties you may be interested in, maximising your return on investment.
Contact us today for help expanding and diversifying your property portfolio
Zoopla*
Rightmove**
This article was originally published by BriefYourMarket and is reproduced here with their permission.
For more company news and insights from Pygott & Crone, click here
Latest news
Fixed-rate products: Comparing terms and understanding market options
Fixed-rate mortgages dominate UK lending markets, offering payment certainty that most borrowers value highly.
Managing rent reviews under the Renters' Rights Act: Process and tribunal risks
The Renters' Rights Act fundamentally changes rent review procedures, limiting increase frequency, strengthening tenant challenge rights, and creating tribunal risks for landlords implementing excessive or improperly procedural increases.
Mortgage costs vs rental costs: The affordability comparison for 2026
The buy versus rent decision affects your long-term financial position significantly, requiring you to look beyond headline mortgage payments versus monthly rent figures.
Outdoor space presentation: What May sellers should focus on
May presents optimal timing for showcasing outdoor spaces with gardens reaching peak condition through spring growth, flowering displays, and lush greenery.
