Where do I begin when offering opinions here to new or early stage investors in this current marketplace, and do people still believe property investing is a route to
wealth creation?
If, like me, you still have faith in property investment and its potential then read on. I am sure many of you will do, otherwise you would not be a subscriber to this magazine. Given all the changes in the marketplace in recent years and with the UK government seemingly still set on deterring private landlords from investing in the sector, it should come as no surprise that some, mainly older private landlords with portfolios built up over decades, have already quit the Private Rental Sector (PRS).
Others have decided that some niche investing strategies now offer potentially better returns for the time and effort they put in each month when managing their properties.
A quick glance at any of our monthly editions and news sections will show two trends of note which are obviously very positive for investor-landlords and which counter some items which have resulted in a degree of negativity being aired in the wider media. As we have consistently reported there is an increasing awareness of an acute shortage of rental property, particularly in major cities and many prospective tenants are increasingly finding it difficult to find a new property in their chosen area. This trend is becoming acute in Scotland, London and the inner south-east England region, and as such the knock-on effect is that average rents on new tenancies have been soaring in last two years.
One other item to note is the impact of the ‘cost of living’ crisis and tenant choices, with budgets being squeezed, and which has resulted in a ‘boom period’ for many landlord-developers and investors who operate in the shared accommodation / HMO sector. Tenants who previously would have sought a one bedroom flat are looking to save money each month by choosing an HMO or Co-Living unit instead, and to then hopefully have more money left in their bank account each month.
So there are a number of positives with property investing in 2023 to consider for those with a positive mindset and who see ‘opportunity in adversity’. As such I spoke recently with some experienced portfolio landlords, private investors and developers to gauge their opinions on what readers should be considering for the next year or so. Note that this is the first of a series of articles on this theme but this month I spoke first with Vicki Wusche, who offered her thoughts regarding investor choices in the current market.
