0:03 AM, 3rd January 2025, About A year ago
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The UK’ property investors will be facing a turbulent year, navigating a complex landscape of economic and political headwinds, one expert predicts.
Tom Brown, the managing director of real estate at Ingenious, a specialist investment platform, says: “The rental market is expected to maintain strong momentum as homeownership remains difficult for many.
“The discontinuation of government schemes like Help to Buy, combined with high mortgage rates and inflation, have left first-time buyers struggling.”
He adds: “Consequently, rental demand, particularly in urban areas, is set to grow, with residential rents seeing double-digit increases.”
Mr Brown warns: “Traditional buy to let investors continue to feel the pinch from a changed tax framework, increased regulations and a tougher compliance environment, reducing rental supply.
“This can only further elevate rents by reducing supply and underscores a shift towards Build-to-Rent developments.”
He added: “These purpose-built projects are designed with long-term renters in mind, providing stable and attractive returns for investors.”
Other issues facing landlords in 2025 include the ongoing political landscape.
Mr Brown explains: “Uncertainties include potential changes in global leadership, especially within major economies like the United States, and the ongoing repercussions of the UK’s post-Brexit relationship with the European Union.
“Challenges around trade deals, tariffs and economic isolation remain a threat to market confidence and transaction volumes.
For property investors and developers, these uncertainties make long-term planning increasingly complex.”
There’s also a problem with Labour’s plan to build 1.5 million homes in the Parliament.
That’s because the construction industry continues to grapple with inflationary pressures, impacting project timelines and profitability.
Mr Brown says that the introduction of stricter building regulations adds another layer of complexity and cost – and challenges.
He adds that co-living spaces are gaining traction, particularly among young professionals wanting flexible and community-oriented living arrangements.
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