Property Insight by Matt Cousins: Crawley and Horsham landlords set for 7% rise in rental incomes

The last two to three years have been difficult for landlords with increasing regulation, dwindling tax benefits and increasing mortgage costs, all placing a big strain on landlords. This has led to some landlords inevitably selling up, especially those who started when there was very little regulation.

There’s no doubt improved regulation was required as tenants’ safety is imperative, but the large rise in mortgage costs has made many landlords question if it is viable to continue letting a property.

At Inspire we believe in looking at the long term when it comes to making good financial decisions on buy-to-lets. And there appears to be good news on the horizon. According to Roger Martin Fagg, a behavioural economist, the difficult times are coming to an end.

Improved market conditions over the next year including falling mortgage rates, a lack of housing supply and rising consumer confidence are signalling the return of better times for landlords.

Roger, who has an outstanding record of predicting what’s going to happen in the market, has even predicted a 7 per cent increase in rental incomes.

We believe now is the time to hold steady and maintain your buy-to-let portfolio or potentially add to it.

The team at Inspire Estate Agents in Crawley has taken a deeper look at the market forces indicating this to help you decide.

What are the current indicators for improvement in the market?

UK money supply: This is the total volume of money held by the public. Although currently running at 0 per cent, this is expected to grow to three or four per cent by the end of the year meaning people have more money to spend.

Increased confidence: Retail sales are improving. The UK PMI has seen steady growth and wages growth is predicted to grow by five per cent with the labour market predicted to tighten around Autumn.

With inflation falling it’s widely expected that the Bank of England’s base rate will reduce the current high of 5.25 per cent to 4.75 per cent or possibly more. Competition amongst mortgage lenders who make their money from volume is also bringing interest rates down from their highs last year.