UK Landlords Property Investment Intentions Show Mixed Signals in Q4 2022
By Rohit Kohli
23rd February 2023

The Mortgage Works' Q4 2022 buy to let barometer report highlights mixed signals from the UK's private rented sector. The report's findings suggest that while landlords remain optimistic about the long-term prospects of the buy to let market, they are becoming increasingly cautious in the short term.

The typical landlord in Q4 2022 had 7.5 properties in their portfolio, with an average rental yield of 5.7%. However, the report also revealed that landlords' purchase and sales intentions are diverging. While 9% of landlords plan to buy a property in the next 12 months, 30% are likely to sell property during the same period. Moreover, the number of landlords feeling confident about the prospects for capital gains and rental yields has fallen considerably year on year.

The growing disparity in purchase and sales intentions among landlords is likely due to regulatory changes and economic uncertainty. In particular, landlords may be concerned about the potential impact of rising interest rates and changes to tax rules for buy to let investors.

Nonetheless, the report highlights that the rental market remains robust, with tenant demand continuing to rise. 65% of landlords reported an increase in tenant demand over the past three months, with 39% saying that it had risen significantly.

To fund their next purchase, 67% of landlords plan to use a buy to let mortgage, and 57% intend to purchase their next buy to let property within a limited company. The report also shows that 29% of buy to let borrowers intend to remortgage in the next 12 months.

Landlords' optimism for their own lettings businesses remains at a low level, with only 24% of landlords feeling good or very good about their prospects. This is almost on par with the level seen at the start of the pandemic and the lowest level since 2007.

In conclusion, while the Q4 2022 buy to let barometer report suggests that landlords are becoming increasingly cautious in the short term, it also highlights the resilience of the rental market. Tenant demand remains strong, and landlords are continuing to generate healthy rental yields. Nonetheless, with regulatory changes and economic uncertainty on the horizon, landlords will need to remain vigilant and adapt to changing market conditions.

Your property may be repossessed if you do not keep up repayments on your mortgage – On all BTL Promotions.

Date Source: The Mortgage Works, Buy to Let Barometer Q4 2022

What to Expect for Housing in 2024

As 2024 begins in earnest, what can homeowners, sellers and prospective buyers expect in the new year? Falling house prices and uncertainty around mortgage rates made for a turbulent 2023. Will a new normal take shape in 2024? Or will changeability remain the only constant? As 2024 begins in earnest, what can homeowners, sellers and

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]

..... ..... .....
..... ..... .....
...... ......