2023 was a year that saw property price growth stagnate and a huge supply and demand issue, sending costs skyrocketing. With rising interest rates and inflation playing havoc in the market, fewer people were willing to buy, and renters were paying more than ever for suitable accommodation.
However, 2023 was also a year that defied property market predictions. Some forecasters expected price decline to fall into double-digit percentages. However, the year saw prices rise during the final few months (on a month-by-month basis). In addition, Nationwide research showed that house prices only fell by 1.8% year-on-year.
Coupled with inflation falling to 3.9% and the Bank of England halting their interest rate hike, mortgages have fallen dramatically, making home-buying more attainable than it had been for most of the year. It seems that buyers and sellers are reacting positively to the news.
The current housing market may also buoy buy-to-let investors. Savills predicts rents will grow by 18.1% over the next five years. In addition, they have also indicated a 6% rental growth in 2024. With property prices still down and not expected to rise until 2025, the UK property sector is an enticing proposition for many would-be landlords looking for the best property investment.
Read More: Be sure to check out our guide on how to make money with property if you’re looking to get into property investment in 2024.
Want to find out more about buy-to-let investment? Dive into some of our handy buy-to-let area guides, including:
