A prominent buy to let lender says falling house prices five canny landlords the chance to buy property relatively cheaply.
Emma Cox, managing director of real estate at Shawbrook Bank, comments: “Scepticism among buyers looks set to continue as the property market experiences its third consecutive month of declining house prices.
“The combined effects of double-digit inflation, alongside the UK’s slow march into recession is keeping many would-be first time buyers away from entering the market.
“However, the reluctance demonstrated by this group presents estate agents and landlords with greater opportunities to shift rental properties, particularly to younger individuals who are hesitant to make the transition from renting to homeownership in the current economic climate.
“With prices looking set to fall even further from the record levels experienced in the summer, and the effect of the mini-budget still being felt, we expect to see professional landlords and real estate investors capitalising on the availability of cheaper stock to expand their buy-to-let portfolios."
Her comments come after news from the Halifax that house prices fell 2.3 per cent in a month with the average price of a house standing at £285,579, down from £292,406.
On the year, meanwhile, prices rose 4.7 per cent in November, down from 8.2 per cent growth the month before. The rate of annual growth slowed in all regions bar the North East, where it edged up to 10.5 per cent from 10.4 per cent.
Kim Kinnaird, director of Halifax Mortgages, says: “While a market slowdown was expected given the known economic headwinds - and following such extensive house price inflation over the last few years (19 per cent since March 2020) - this month’s fall reflects the worst of the market volatility over recent months.
"Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.
"The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy - and more specifically the labour market - performs will be key in determining house prices changes in 2023."
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Yes they are cheaper, but a lot of us are selling not buying !!
I agree. I'll be selling not buying no matter how cheap. Time to get out!
Getting the numbers to stack is tricky on standard residential property. Deposits need to be over 50% on the standard vanilla BTLs in my local area.
I think now is the time to stay put, neither buying nor selling.
This article is missing a few words, rich, well off canny Landlords can bag some bargains. I had a house up at £550,000 had one offer of £470,000, fortunately I don't need to sell, so didn't. But others may need to or have just had enough and want to walk away from this industry.
It's all down to your own personal circumstances.
I intend to sell half my portfolio, but I may need to wait a couple of years due to the change in the market. I will find out in next couple of months!
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