Belvoir, which is one of the largest High Street property management groups manages over 73,000 properties nationwide, and franchisees across the country are very aware of just how tough the previous years have been for landlords. No sooner did we start to come out of the pandemic than other factors began to kick in to make life even more stressful, including a cost-of-living crisis, rising mortgage rates, increased legislation, and many other unforeseen challenges to make life more difficult, particularly for DIY landlords. Nevertheless, there are glimmers of hope, and we thought it would be a good idea to focus on a few reasons why landlords might start to feel a little more positive about 2023. Here are six reasons that we hope will help to balance out those seemingly endless headline-grabbing bad news stories that are constantly in the press.
- Rental demand is massive. With interest rates rising, and the cost-of-living crisis biting, many people are delaying buying properties. In fact, according to Aviva, up a million people may be ruling themselves out of the first-time buyer market, which means the demand for good quality rental accommodation has never been higher. Furthermore, this demand shows no sign of slowing down. In some areas there are literally hundreds of tenants going after the same property, and agents are in desperate need of more properties to offer. Where there is this kind of demand, there is also opportunity to generate higher rental yield increases, but advice should be taken to ensure affordability for tenants.
- Is it time to increase your portfolio? Whilst it is true that interest rates have risen, and indeed, may continue to increase, they are still relatively low - especially when compared to the record rate of 17% in November 1979! As we enter 2023 property still represents an excellent long-term investment, so why not visit a professional estate agent and find out for yourself if there are any golden investment opportunities in your area. Many Belvoir agents have in-house expert MAB mortgage advisors who can help investors to prepare so that they are ready to act quickly if and when a bargain investment arises. Research by Landlord Leaders in 2022, revealed that 68% of all landlords had or were proactively planning to buy more property.
- HM Treasury has acknowledged that self-employed individuals and landlords are currently facing a challenging economic environment. Since the transition to Making Tax Digital for Income Tax Self-Assessment (ITSA) represents a significant change for how tax is reported, the government has changed the phase in date from April 2024 to April 2026. That's one less thing to worry about this year, although getting prepared for when the changes come in is advisable.
- There is currently no real evidence of a downturn in the property market, but if that does happen later in 2023 there may well be opportunities for investors to buy lower priced stock. However, if you are currently a landlord who is worried about the possibility of a downturn and the subsequent consequences of job losses and rent arrears, we advise you to speak to your local Belvoir agent NOW to find out more about the best rent guarantee products on the market so that you can cover yourself for all eventualities.
- There are ways to reduce your property overheads. For example, you could speak with your local Belvoir agent to discuss a non-obligation Building Insurance & Contents cover renewal quote. In addition, have a chat about rent reviews to ensure that your property is keeping up with market conditions. If you have a fixed mortgage that is due for renewal, talk to an MAB financial advisor to ensure that you are getting the best possible deal.
- You are not alone! No matter what happens in the property market in 2023, you will not have to deal with everything on your own. By working with a Belvoir agent, you can take advantage of over 25 years of industry experience and will receive all the help and advice you need to ensure you remain legally compliant, reduce the risk of empty properties, and are able to take advantage of opportunities and maximise the potential of your investments.