Property Purchasing Trends For Landlords

There’s no arguing that the pandemic has drastically affected the property market, with the ‘race for space’, the recently concluded Stamp Duty Holiday and the struggle between property supply and demand all contributing to the soar in house prices. And with a 17% increase in rental prices expected by 2025, it’s looking like 2022 will be a potentially promising year for property investors.

So what are the upcoming trends that investors should keep in mind? Let’s take a look at some of the 2022 predictions for the property market.

 

The ‘Race For Space’

With more and more people working from home, the ‘race for space’ continues as people prioritise spacious homes with a garden over an easy commute to the office. This therefore means that larger properties are becoming the most favourable and sought-after premises. In fact, Zoopla announced that flats were taking three weeks longer to sell than houses. And it’s looking like home working is here to stay, at least partly, with many businesses and individuals favouring a hybrid approach to flexible working which would suggest that this demand for larger properties won’t be easing any time soon.

 

Dynamic Shift In Commercial Property

The pandemic has definitely given the commercial sector a battering. Lockdowns meant bustling high streets were left deserted as non-essential shops were forced to close and office employees worked from home. This inevitably pushed retailers to digitalise their businesses and sell their products online. But what does this mean for the commercial sector going forward?

According to Investec, office spaces will evolve. Businesses will still need office space but may look at downsizing in response to the shift in home working. Therefore, the emphasis will most likely be on premium spaces that can be used to showcase a business’s talent and attract potential clients. What will happen to the remaining space? It’s looking like extra space could be turned into residential or student housing.

Investec also suggests that greater flexibility will be needed for retail property. The pandemic has resulted in many businesses looking for shorter leases or greater flexibility over their leasing terms. In tandem with this, Savills suggests that we could start to see more pop-up shops emerging. This relatively new style of retail gives companies the opportunity for short-term leases and to ‘test the waters’ in terms of location.

So although there’s still a lot of uncertainty over what the commercial property market will look like for 2022, it’s clear that both landlords and businesses will be looking for more flexible, resilient and versatile leasing agreements.

 

UK property hot-spots for 2022

Next year’s hot-spot predictions are also proving to be a topic of debate. As with everything, there’s a degree of uncertainty but it seems that emerging locations are giving landlords the opportunity to cast a wider net. We’ve analysed several reports and have summarised the most commonly predicted hot-spots for 2022:

 

1.  Oxfordshire

At the top of SevenCapital’s list of emerging places to invest, Oxfordshire is a promising choice for landlords for several reasons. The universities obviously mean there are thousands of students looking for accommodation, but the University of Oxford is also the biggest employer in the county, with over 14,000 staff members. In addition, Oxfordshire’s economy is said to be one of the highest performers in the UK, and Oxford has been ranked as a top location for start-up businesses. What’s more, the county is proving to be appealing to those working in London looking for affordable accommodation and greener spaces.

 

2. Bracknell

Bracknell is another emerging contender. Seen as a commuter town, it’s a good alternative to London for those looking for affordable yet spacious accommodation. The future looks very bright for Bracknell, with new employment opportunities and an 8% increase in rental prices predicted by 2025 set to transform the town.

 

3. Manchester

Manchester has been a popular investment choice for several years. Both its population and economy continue to grow at an exponential level, with some great employment opportunities. Not only is Manchester deemed a popular place for private landlords to invest, but it’s also said to be in the top 10 global locations for start-up businesses, making it a hot-spot for commercial landlords too.

 

4. Liverpool

It’s probably no surprise that Liverpool has once again been crowned an investment hot-spot. It’s well-known as being a highly affordable place to invest and the city is said to have some of the strongest rental yield postcodes in England. Liverpool’s future regeneration plans, such as Liverpool Waters, are also set to take the city to new heights, bringing with it further economic growth and employment opportunities.

 

5. Birmingham

Dubbed as the UK’s second city, Birmingham has been an investment favourite for years and it doesn’t look like this is set to end any time soon. In fact, Savills forecasts that the city will see price rises of 24% by 2025 and it’s thought that rent prices will increase 12% in the next 5 years. According to SevenCapital, Birmingham is even noted as one of the top locations for investment in Europe. The HS2 plans to connect Birmingham and London will no doubt continue to revolutionise the city and bring with it endless opportunities.

 

Accounting Services For Landlords

Now we’ve given you some food for thought, let’s talk about the accountancy side of property investment. Landlord accounting can be a minefield. With challenging and tricky legislation, staying compliant can be incredibly complex and it understandably puts many property owners off renting out their properties. But this is where we’re here to help.

Whether you own a single property or an entire portfolio, our team of experienced landlord accountants will take care of all of the nitty-gritty, leaving you to do what you do best. We’ll ensure you stay compliant, help you reduce your tax liability and even offer investment advice if you’re looking to increase your portfolio.

 

For more information, visit our landlord accountants webpage where you’ll find an overview of our landlord services and fees or take a look at our free landlord accounting guide. Once you’re ready, get the ball rolling by requesting a free consultation and let us help you work smarter, not harder.