Will 2024 be a Good Year to Invest in Property?

“2023 has proved a tricky year but it’s also provided opportunities that haven’t been available for the last few years.

“On the one hand, the rises in base rates have meant that investors have needed to work out whether deals stack up.

“And for HMO landlords things have been particularly tough, with the increased cost of utility bills on top of higher finance costs.

“But the ‘froth’ of rising prices over the last few years that has made getting good deals extremely difficult, has gone. That means, although prices haven’t fallen anywhere near as far as expected, there have been much better bargains available this year, particularly where vendors need to sell quickly. 

“In particular, we have seen a big uplift in some great quality properties coming onto the market via auctions.

“2024 is definitely the year when professional investors will see growth. This is already apparent in the increasing number of portfolio landlords - 18 per cent of landlords now own 50 per cent of rented homes within the private rented sector alone (i.e. excluding institutional and public sector landlords). 

“This has come about as a result of many already well-aired factors – particularly, but not exclusively, the gradual emergence of the Renters (Reform Bill) and an increase in regulations.

“Economic circumstances have also necessitated landlords becoming more financially astute and making adjustments – from structural changes to their portfolios to physical changes to their properties (specifically in relation to energy efficiency) – to deliver a better return. It is now not uncommon for us to receive new instructions from landlords with as many as 50 properties; a few years ago, this was rare.

“The reality is, with a subdued market expected in 2024, it is highly likely that there will be some good bargains available. And with finance predicted to become more accessible, there should be something for all investors, not just in 2024, but also in the run up to Christmas, which can offer some great value deals as many sellers are keen to agree sales before the holiday.

“Although there have been reports of landlords leaving the market because of increased regulation, in reality, a lot have just naturally ‘retired’. Buy-to-let was ‘born’ in 1997 and many landlords are now over 55, so, having seen great price and rental growth – particularly during the pandemic – some have simply reached the end of their investment journey and cashed in.

“But while we have reservations about elements of the Renters (Reform) Bill, we welcome and encourage improvements in standards across the board and are pleased to help our landlord clients, whatever their size and situation, in implementing them.

“And, in England, with the 2025-28 deadline for minimum EPC ratings of C being scrapped, and the Government not intending to move forward with abolishing Section 21 until the court system has been vastly improved, things are looking rosier for 2024 than they have been this year.”