In an uncertain market, property investors are discovering exciting opportunities in regional towns and cities
Investing in property can be extremely lucrative but, as the past few years have proven, buying a house isn’t always a safe bet. Seasoned investors know all too well that putting their money into bricks and mortar comes with highs and lows. Sometimes prices surge, as in the wake of the Covid pandemic, while at other times rising costs and mortgage rates have the potential to create difficult situations.
However, the current state of the housing market is creating an interesting opportunity for investors. While the latest figures show property prices are recovering, we are no longer seeing the unsustainable acceleration of the pandemic period (2020-2022). Borrowing costs are still higher than they once were but average mortgage rates have finally begun to slip back below 5 per cent or even 4 per cent. For investors, this is the perfect time to focus on rental properties.
Across many of the UK’s major cities and towns, a huge boost in demand is pushing up rents substantially. Until very recently, UK rents had been climbing by double digits for more than 18 months, and the latest figures from Zoopla show that landlords are now getting £1,200 more per year in rent for their properties than they were 12 months ago.
