The Property Education Blog

If you wanted to learn more about investing in real estate in 2023, you are in the right place.

Four out of 10 UK buy-to-let landlords intend to purchase additional properties

Despite many experts predicting an overall decline in the property market, many UK property investors are looking to buy more properties to expand their portfolios, a recent survey by Landbay has revealed.

The results found that around 41% of investors plan to purchase more properties than before over the next 12 months – with increasing levels of high tenant demand being the most significant reason behind the decision.

Demand is Outweighing UK Housing Supply

Over the last few years, the disparity between the limited amount of properties available to purchase and the growing number of people wanting to buy them.

Alongside soaring mortgage rates and the ongoing cost of living crisis, this has led to many people choosing to continue renting instead of purchasing their own homes. 

This is excellent news for investors, as it has led to a greater pool of potential tenants for them to choose from. 

This gap also led to an overall increase in the number of tenants essentially engaging in a bidding war to secure their preferred property and the number of successful deals being made before viewings had even taken place.

One particular provider, RWinvest provides a useful array of investing in property guides and factsheets.

Falling House Prices Acting as an Incentive

Many would typically assume declining house prices as a sign of a failing market. However, around 33% of landlords have cited the potential of falling prices as another reason to expand their portfolio. 

As of June 2023, annual growth slowed to around 1.2% – again, another symptom of the supply/demand imbalance. 

In 2023, overall, prices are expected to fall by as high as 10% (depending on where you look). 

Why does this excite investors, then? 

According to Savills, the property market is expected to see a capital appreciation of 6.2% by 2027, with some regions like the North West seeing growth as high as 11.7% across the next five years. 

This means that declining prices in 2023 could actually incentivise investors to purchase properties now before the market sees a surge in prices in the next few years.