Landlords: What to expect in 2024
As we enter the new year, we have conducted a thorough analysis of what landlords may encounter in the coming months.
At Nicol and Co, we benefit from access to economic reports from Roger Martin-Fagg. A nationally renowned behavioural economist and author who regularly provides insightful reports and forecasts.
According to his predictions, given the diminishing inflation, there appears to be no global inclination to further increase the interest rates now that inflation has started to reduce, and anticipates that by the end of 2024, the UK base rate will drop by 0.25%, subject to no turbulence during this period.
Roger Martin-Fagg forecast for 2024 can be shown in the table below.
The landscape for buy-to-let mortgages appears promising in 2024, with notable interest rate reductions. Letting Agent today reported in a recent article as follows:
Rate reductions by lenders in the BTL and home ownership sectors have fed through to the average rates, as calculated by independent mortgage market monitor Moneyfacts, which says the average two-year fixed rate and five-year fixed rate are at their lowest levels since June 2023.
Richard Fearon, chief executive at Leeds Building Society, told the BBC over the weekend: “This mortgage price war has become very visible this week. There is always a Christmas slowdown, but we’ve seen the market come back with a bang and it’s really competitive. Rates are down one percentage point or so since their peak.”
The full article can be found here: https://www.lettingagenttoday.co.uk/breaking-news/2024/1/rates-war-mortgage-lenders-slash-btl-borrowing-costs-to-win-business
Initial expectations pointed towards an election in October, but alternative forecasts suggest that it could occur as early as May, possibly to align with traditional dates. There is a prevailing sentiment among economists that a labour government is likely, raising questions about its potential implications for the broader housing market. What this means for the wider housing market remains to be seen.
Despite the positive news of the EPC rollback at the end of the year, landlords should remain vigilant as a potential election looms. The spotlight is currently on the Renters Reform Bill, expected to come into play in late 2024 or early 2025, contingent upon the election’s impact. For a detailed overview of the reform bill, visit Nicol and Co’s article which can be found here:
Additionally, Letting Agent Today provides further insights in their article:
As you navigate the evolving landscape of the rental market in 2024, we at Nicol and Co are committed to keeping you informed and prepared. Stay ahead of the curve by regularly checking our resources here https://www.nicolandco.co.uk/news/
Should you have any questions or need personalised guidance, reach out to our Lettings Manager, James Gwynne, at 01905 675999, James@nicolandco.co.uk