Affordability is the biggest factor impacting the housing market at the moment. The huge hike in energy prices and food prices were enough to start feeling the pinch. Now add into the mix that people are starting to be impacted by the increase in interest rates… People might be getting a little twitchy.
According to recent publications, the UK house price growth slowed to 4.4% in November, which is down from 7.2% in October. This is the biggest month-on-month decrease in over 26 months. We don’t need to look to far to work out what the cause of that was… (Mini budget we’re looking at you 👀)
Given that the majority of the general public are still a little cautious, this position is expected to last well into 2023.
What does this mean for investors?
Well in essence, it means that there is an ever-increasing demand for rental properties. Given that rental properties are already in fairly short supply, as demand increases, so will rent prices.
This causes a slight dilemma for existing BTL landlords as to whether to “stick or twist”. Is this increase in rent enough to offset the increase in interest rates? Or it more sensible to take out the money and invest into something with higher cashflow?
At Brentor Property we specialise in high cash flowing strategies. One of our favourite strategies is the HMO – The best bit? It is all but recession proof!
HMO - Is it really a recession proof strategy?
Come back next week and we’ll explain why it absolutely is!
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