Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Property is still regarded as a safe long-term investment
    Investments

    Property is still regarded as a safe long-term investment

    October 29, 20244 Mins Read


    Although the buy-to-let landscape may have changed over recent years, landlords continue to overcome obstacles – and the property market outlook just got brighter for the year ahead.

    Property investment remains one of the most popular long-term asset classes, favoured for its reliability and lack of volatility compared to many other forms of investment. The recent resilience of the housing market in the face of economic pressures has seen a boost in buyer confidence over the past year, and the forecast is for this to improve in 2025.

    Buy-to-let mortgage rates have also now dropped to their lowest level since September 2022, while product availability is also significantly higher, giving property investors a much better range of options at more competitive rates than over the past couple of years.

    Research from Moneyfactscompare.co.uk has revealed that there are now a huge 3,277 buy-to-let mortgage products available on both fixed and variable rates, up from just 988 in October 2022. This is also a small uptick from the 3,186 deals available last month.

    When it comes to rates, the average two-year fixed rate on any loan to value (LTV) is now 5.24% (down from 6.40% a year ago), and this drops to the lowest average of 4.45% for a five-year fixed rate with a 40% deposit. If you’re fixing for two years with an LTV of 60%, the average rate is now 4.67% – down from 6.09% a year ago.

    Positive signs

    Economists are widely expecting the Bank of England to bring down the base rate at its next announcement on 7th November, and this could see buy-to-let mortgage rates further slashed by lenders. Those looking to either enter the market, enhance their portfolios, or remortgage in the coming months will certainly find cheaper deals than before.

    Rachel Springall, finance expert at Moneyfactscompare, said: “The buy-to-let market has had its fair share of challenges over the years, so landlords might find it encouraging to see fixed interest rates have been on the downward trend. There are also many more deals for borrowers to choose from, as lenders have been adjusting their ranges to accommodate demand.

    “These are positive signs for prospective landlords, but there are numerous other factors to consider before taking the leap into the buy-to-let sector, not just the cost of a mortgage. The margin of profit from rental income may well be tighter than expected, but property is still regarded as a safe long-term investment.”

    Property investors are adapting

    While property investors are now beginning to secure cheaper mortgage rates, in some cases boosting what they can afford to buy, they are also benefitting from rising rental yields as demand remains extremely high in the sector.

    And despite the challenges that have been faced by property landlords in recent years linked to both rising mortgage rates and the result of tax changes impacting the buy-to-let market, huge numbers of landlords have changed tack in order to continue to make their property investments a successful long-term prospect.

    The number of buy-to-let properties operated by limited companies set up by landlords between January and September this year has increased by 23% compared with this time last year, according to Hamptons. Meanwhile, almost three quarters (70%) of new buy-to-let investments in England and Wales are now being made through a limited company.

    This changes the way that tax is paid on an investment property, with owners also being able to claim different tax reliefs than they could if they owned it as an individual. There are also other potential benefits, such as being able to minimise inheritance tax by allowing heirs to become shareholders of the limited company.

    If inheritance tax thresholds are changed in today’s Budget (or other changes are made that could up the bill for some people), there could be an even greater surge in landlords using a limited company to hold their housing investments.

    Rachel Springall concludes in her latest report: “Landlords will be on tenterhooks to see how the upcoming Budget will play out and lenders may remain fluid with their fixed rate pricing over the next few weeks, particularly due to volatility surrounding swap rates.

    “Any borrowers concerned about their present situation would be wise to seek independent advice if they need support or indeed to navigate the latest deals if they are due to refinance in the next few months.”

    If you’re looking for your next UK property investment opportunity in one of the country’s top-performing locations, get in touch with BuyAssociation today.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Canada’s pension fund accused of not factoring climate in investing

    Investments

    Commercial property: Space race | Law Gazette

    Investments

    Katie Boulter: British No 4 in tears after injury forces retirement at Hong Kong Open | Tennis News

    Investments

    Alex Eala reacts to Boulter’s shock Hong Kong retirement as she seals big rankings boost

    Investments

    President Donald J. Trump Drives Forward Billions in Investments from Japan – The White House

    Investments

    Ardagh seen torching riskiest bonds through courts as consent route fails – The Irish Times

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Metal detectors will again provide extra layer of protection at some Broward County schools

    Commodities

    Italy’s Upcoming Auctions And Shifts In Energy Policy Highlighted

    Property

    Workington: Period property on the market for £325k

    Editors Picks

    Dow, S&P 500, Nasdaq futures climb ahead of week poised to shake markets

    July 28, 2025

    Malakoff Humanis prend le contrôle de la fintech lyonnaise Mon Petit Placement

    May 6, 2025

    Dow, S&P 500, Nasdaq climb to records as sharp jobs revision sets stage for inflation data

    September 9, 2025

    Bitcoin, gold, or stocks? Senior commodity strategist weighs in on the battle

    July 26, 2024
    What's Hot

    NAU Swimming and Diving to Compete in Blue vs Gold and Meet at ASU

    October 10, 2024

    SSE Launches Ireland’s First Ultra-Rapid EV Charging Hub

    August 25, 2024

    Unprecedented drop in cost of new American homes sparks crash fears

    September 8, 2025
    Our Picks

    MCX trading halt sparks concern among brokers over system reliability

    October 28, 2025

    Best Income Stocks to Buy for June 23rd

    June 23, 2025

    Binance Pay goes live at 31 000 South African merchants with 50% cashback launch

    September 10, 2025
    Weekly Top

    Money 20/20 2025: The Increasing Use of Stablecoins Shows No Sign of Slowing Down

    October 28, 2025

    Import restrictions issued on Taiwan due to African swine fever  

    October 28, 2025

    Reps advance bill to establish Nigerian Fintech Regulatory Commission

    October 28, 2025
    Editor's Pick

    Connecticut Bans Crypto Investments and Blocks State Use of Digital Currencies

    June 11, 2025

    PB Fintech nomme Naveen Kukreja président du groupe -Le 28 février 2025

    February 27, 2025

    How Many Cryptocurrencies You Need to Buy a Villa in Dubai

    October 12, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.