It’s no secret that as a landlord, buying a property to rent out in Worcester (otherwise known as ‘buy to let’) can be a lucrative and attractive strategy. Property prices have historically always grown and this shows no signs of changing, so buy to let UK is a smart long-term investment.
However, whether you’re just starting your buy-to-let journey or already renting out several properties in Worcester , it’s important that you keep up to date and do your research on the future of the buy to let England market in 2024. Eager to find out more? Good, because your research starts here!
The Current Landscape
Before we try and peer into the crystal ball, let's get a snapshot of where we stand today. The Buy to Let market in the UK has been through its share of fluctuations; regulatory changes, economic conditions, and the evolving needs of tenants have all played a role in shaping the market.
However, despite its relative volatility, buy-to-let still remains a popular investment choice, providing landlords in Worcester with steady rental income and the potential for property appreciation.
Rising Rent
One major factor keeping the buy-to-let market thriving in 2024 is the continuously rising rents. Rent rises are ubiquitous in the market right now, and whilst this isn’t exactly great for tenants, it presents a lucrative opportunity for UK landlords like yourself!
You should certainly take advantage of this situation and match the prices of your competition, but don’t get carried away, because unfairly high rent is beginning to push tenants away from renting. In many cases, tenants are starting to realise that applying for their own mortgage is almost as affordable as renting in today’s landscape, so make sure to be reasonable and communicate clearly with your tenants to ensure they’re not scared away!
The Impact of Remote Work
Rising rent may be more of the same, but one significant change is disrupting the world of buying to let; remote work. Ever since the pandemic, remote work has become increasingly popular, and this is giving workers more flexibility around where they live, leaving them less dependent on living close to a physical office. This presents some interesting changes to the buy-to-let England market, and if you approach them with the right cards, this could be seriously beneficial!
People who own properties near a physical office are now beginning to rent their property out, choosing to rent a property somewhere more attractive whilst continuing to work from home. Naturally, this brings a whole new audience of prospective tenants to your disposal, but you’ll need to make sure that your property is renovated with the latest work-from-home amenities, fully furnished, with a rapid internet connection to tap into it!
Autumn Statement Changes
Landlords have always had to navigate regulatory changes set out by the British government, and 2024 is due to be no exception. In particular, Jeremy Hunt presented his Autumn Statement changes in November 2023, and it’s essential that you familiarise yourself with the topics that he brought up to ensure that you are not left behind following outdated regulations!
Whether you've already bought a property to let or you're considering doing so, this is likely to leave you in the position of being a full-time landlord. If that sounds about right, Hunt's announcement of National Insurance changes will affect you, but don't worry - it's good news! Every full-time British landlord can breathe a sigh of relief in 2024, because you'll no longer be expected to pay the previously compulsory £3.45 of NI per week. That’s a serious saving!
However, the good news doesn't end there - Hunt also suggested that changes to the Permitted Development Rights (PDR) could be due in 2024, and this would make it easier for you to renovate and split a single rental property into two rentable apartments. This still hasn’t been confirmed, but if it happens, it could be worth expanding your property searches to larger houses with multiple bedrooms, as the opportunity would be seriously lucrative!
Unfortunately, there were far too many changes announced in the Autumn Statement to list in this article, but we’ve covered a couple of the most important points. To access a full list of the announced changes and speculations, a full overview can be found on the Gov.UK Autumn Statement 2023 webpage.
The outlook for buy to rent UK in 2024 is filled with potential, but it comes with its share of considerations. The demand for rental properties remains strong, driven by changing lifestyles and economic factors, but landlords like you must stay informed about regulatory changes and be willing to adapt to change if you want to ensure you don’t scare away prospective tenants.
So, as you plan your Buy to Let investments for 2024, remember that preparation and a keen eye on market trends will be your allies. Keep this article handy if you get stuck, and here's to a successful year ahead in the world of UK property investment.
Shelton & Lines are your property management and letting agents in Worcester . Call us on 01905 616330 or email info@sheltonandlines.co.uk to find out how we can help you with your buy to let property.