As we approach the end of a turbulent financial year, many landlords in the UK will be weighing up their options going into 2023 and debating whether to remain in the buy-to-let market. Despite an uncertain economic outlook, we can take a look into what’s happening right now and decipher whether or not buy-to-let will continue to be a worthwhile investment going forward.

What’s happening to buy-to-let mortgages?

In the fallout from former Chancellor Kwasi Kwarteng’s renowned mini-budget, just like the rest of the market, buy-to-let loans took a hit.

The number of available products decreased to just 988 different deals in the wake of the announcement, compared with 1,942 before the mini-budget, according to Zoopla.*

This is due to interest rates increasing significantly since the beginning of the year as a result of the hikes to the Bank of England’s base rate, which is the official cost of borrowing.

However, the mortgage market is currently in state of flux. Rates have slightly fallen after some market confidence was restored by the appointment of Jeremy Hunt as the new Chancellor, and they may fall further as the cost of government borrowing continues to drop.

Are any new regulations being introduced in 2023?

The government has pledged to introduce the Renters Reform Bill, which includes measures to protect renters from unfair rent increases and evictions. Homes will also have to meet minimum standards and it will become easier for renters to have pets.

The changes are centred around improving the quality of homes in the private rental sector, with the government estimating that 21% of properties are currently unfit.

However, the new bill will not lead to significant extra costs (if any) for landlords who already maintain high standards.

What’s happening with rents?

Rental rates are currently rising in line with mortgage rates. Data from Zoopla’s latest Rental Market Report found that new rental rates have increased by £115 during the past year to average at £1,051.*

This sharp spike is due to the disparity between supply and demand in the sector. With too many landlords exiting the market due to uncertainty, there are too few properties available in the private rental sector to catch up with current demand.

The number of rental homes on the market is currently around half the level seen during the past five years.* Meanwhile, the rate of demand for a rental property is around 142% higher than five years prior, according to Zoopla.*

We can expect that the trend of demand outstripping supply is likely to continue into 2023, putting further upward pressure on rents.

Should I purchase a buy-to-let property?

Those looking to invest should not be deterred by the current conditions. In fact, with rental demand soaring, first-time buyers postponing their step onto the property ladder for the time being, and rents reaching new highs, you are likely to be in a strong position if you choose to invest now.

What’s the outlook?

The buy-to-let market – like the rest of the market – is likely to encounter a few ‘bumps’ in the coming year as a result of hiked-up mortgage rates and the cost-of-living squeeze.

But with demand far outweighing supply for rental homes, and strong rent increases expected going into 2023, property investment remains a safe bet over the long term, in spite of any short-term hurdles.

If you’re interested in becoming a landlord, contact our team today for advice.

Zoopla*

Although the evenings are gloomy, the roads are busy, and the weather outside is frightful – moving home during the festive period can be a stress-free process if you’re well prepared for it. Whether you’re buying your first home this season or moving on to your next, here are some top tips for a smooth move during the holidays…

Book a removals company

With unfavourable weather, limited staff and packed schedules, removal companies can be difficult to reach close to Christmas, and this can cause complications with moving. As we reach the end of the year, companies often get booked up in advance, so make sure to ring up as early as possible and secure your delivery slot.

Christmas decorations

Years worth of Christmas décor can quickly turn into a festive frenzy when moving house, so it’s a good idea to organise and label your boxes of seasonal goodies so that they’re ready for move-in day. If you’re moving just in time for Christmas, you’ll likely want to have your decorations unboxed right away, so pack them where they’ll be within easy reach and won’t get damaged. 

Prep for bad weather

Weather conditions are always an important factor when moving, and you’ll need keep an eye on the forecast while you’re planning. Adverse weather can cause delays when moving your belongings, so try and choose a day when the odds are in your favour.

If you’re heading towards a snowy or rainy moving date, protect your new floors from any wet and muddy shoes by laying down cardboard or plastic sheeting in the rooms and on the staircase.

You will also need to prepare for your journey, as trying to stay warm when the temperatures are low can be just as exhausting as overheating, so make sure to leave some warm clothes out of the suitcase and keep a jumper or coat spare just in case!

Shop early

Get your Christmas shopping out of the way early so that you aren’t disrupting your move. If you’re able to, go through your present list and make sure everything is packed and sent out before moving day. The last thing you need when sorting and packing your belongings is a big pile of unwrapped gifts and cards to wade through. If you’re moving close to Christmas, it might also be a good idea to get your food shop done early by ordering online so you can avoid any last-minute shopping and queueing close to the big day.

Secure all valuables

The festive period presents many opportunities for thieves, especially if you have any high-value items or presents boxed up at the ready. Stay vigilant and ensure all of your belongings are safe while you’re moving. Never leave a door unlocked or a vehicle open and unsupervised, and keep an eye out throughout the process for any opportunists who might’ve noticed a moving van outside your house.

Spread the cheer

A nice touch for this season is to leave the owners of your old home a small welcome pack or note with some helpful information inside. You could write up some handy tips about living in the home – such as when the bins are collected or the designated safe-place for missed parcels.

While you’re at it, why not leave a Christmas card as well? After all, ‘Tis the season to be jolly.

If you’re looking for your next home, take a look at our selection of properties. 

January is a time of clarity, after shaking off the tinsel and pine needles, it’s the time to return to everyday life with intentions of improving it – which is why plans for moving often come into fruition at this time of year.

If you have some reservations about putting your house on the market so soon after Christmas, here are some reasons not to worry and why in fact, January could be the perfect time to sell…

New Year, new home

Buyers on the market at this time of year have a completely different mindset than usual. January can feel like a page turned for many people, with plans for a new life right in the margins. You’re less likely to run into time wasters and tyre kickers in the New Year. People looking for a home at this time are serious about their plans, and if your home happens to match their criteria; you’re in luck.

Boast your home’s best features

Smart buyers will look for a home in the winter. Not only to avoid the summer frenzy, but also because cold weather is far more revealing, and homes can potentially look their worst in the winter. However, this is a great window of opportunity for sellers. Your agent will be able to showcase the comforts of your home with staging so that your bright, warm and welcoming house contrasts against the dark and cold. A cosy refuge from the cold that holds up nicely in the Winter is bound to look even better when the weather cheers up, and this prospect is certain to draw in buyers. 

On the move

In the wake of the holiday season, January is known for being the busiest time of year when it comes to employee redistribution and staff changes. With many people working from home, a change of job may be the push needed for a change of working environment; instead of moving offices, people will be moving to new homes with better office space. 

Now is also the perfect time for first-time-buyers to take their first step onto the property ladder. After spending Christmas indoors with family or in a small apartment, a change in environment could be just the thing they need. 

Less competition

The winter months are a great time to put your house up for sale, particularly in January when the seasonal lull is still wearing off and fewer properties are on the market. You won’t need to fight for buyers’ attention, and the imbalance of supply and demand could be great news for sellers, as buyers know their options are fewer. It’s also easier to make your home stand out from a (smaller) crowd of homes on the market, and if yours has something special to offer, it won’t stay on the market for very long. 

The green element

EPC ratings are becoming increasingly important, and the cold weather will allow you to show off your home’s energy efficiency. Buyers are becoming more conscious about energy bills and individual environmental impact at the moment, and a cosy property with an impressive EPC rating has never been more attractive to buyers than right now. 

Ready to get your home on the market? Speak to our team of experts today to get started.

Selling your home requires a good amount of patience and persistence, and the process is never as straightforward as it might seem. On average, 34% of transactions fall through before exchange, and this is why some homes take longer to sell than expected.

If you’re thinking about ways to jumpstart the moving process, we’ve put together some top tips to help you achieve that smooth sale…

Complete your forms

At the outset of the sale, your solicitor will send over a property information form and a fitting contents form which will need to be completed and returned. These documents form part of the contract paperwork that is sent to your buyer’s solicitor, so the sooner you complete these forms, the sooner the solicitor will have a full pack of information to work through and raise any enquiries they might have.

Alterations

In the property information form, you will be asked whether you have carried out any alterations to your property. If the answer is yes, return the form with copies of the relevant planning permissions, building regulation completion certificates and electrical and gas installation certificates attached. This will narrow down the amount of enquires that need to be raised by your buyer’s solicitor – and therefore will speed up the process.

Guarantees

The property information form will also ask if there are any existing guarantees for the property. If so, make sure to give them to your solicitor with your completed forms. For example, if the property is less than 10 years old, there should be a new home warranty and if you have had damp treatment carried out on the home, there should be a damp-proofing guarantee.

Any time spent getting the necessary paperwork prior to your sale or even as soon as the property is listed will pay off immensely in time saved once the lawyers are involved.

Survey

It’s highly advisable to have a survey carried out, and if you decide to, it is your responsibility to instruct the surveyor rather than your solicitor. It’s important to note that the surveyor may not be able to visit the property immediately, so it’s better to book the survey sooner rather than later. Once your survey has been conducted, the surveyor can prepare a report which may take a few days. As soon as you have received the report, you should forward a copy to your solicitor immediately as they may have to raise further enquiries with your seller, depending on the findings.

Mortgage

If you are purchasing with the aid of a mortgage, it is essential that you provide your lender with the documents that they have requested as soon as possible. This can range from ID documents to evidence of income, and they will not be able to issue a mortgage offer until these requirements have been met. 

Money

Upon exchange you will need to hand over the agreed deposit to your solicitor, so make sure the right amount of money is readily available and in the right account as you may be asked to transfer it to your solicitor at short notice.

Completion Date 

The buyer and seller should have agreed on how soon completion will take place after the exchange. This is something to start considering early on in the transaction as the exchange cannot go forward until a completion date has been agreed upon by both parties. Let your estate agent and solicitor know of any dates that need to be ruled out and any preferences you might have for timing. This will eliminate the need to negotiate on dates in the final stages when everyone is eager to get moving.

Are you thinking of selling your home? Get started on your property journey today by arranging an up-to-date valuation.