How you can benefit from the property market in 2023
With a recession looming and many feeling uncertain about what step to take next in the property industry, it is important you do your research and understand what strategies are going to work best for you. However, the buy to let market is still a relatively safe bet as being profitable in 2023 for these 5 reasons:
- Affordability for buyers. House prices may come down as affordability declines which then stagnates the market, meaning more will be able to buy a home.
- Lack of supply of rental inventory due to the reduction in private BTL investors that have bought in personal names rather than limited companies. As the country is facing a housing crisis it’s a market with massive under-supply.
- Rental values rarely have the same fluctuations on a negative downturn vs house price. The demand for rental homes in the UK went up by 23% in a year, according to data from Rightmove.
- The leads to a higher likelihood of tenants staying put due to lack of supply and as a result reducing void periods for landlords, so buildings aren’t left empty, and costs are covered.
- The medium-term view on interest rates shows stabilisations of Bank of England base rate at 3%.
We have new build homes available in Ipswich, Derby or Birmingham, so if you are looking to buy a property in 2023, click here to view our developments.