As a letting agent and a landlord myself, I know firsthand how crucial it is to time property investments wisely. After more than thirty years in the industry, it is certainly the question I am asked most and after closely reviewing the current data, market trends, and economic outlook, I’m not just advising others—it’s the right time for me personally to grow my portfolio.
Here’s why I believe now presents a compelling opportunity for landlords to invest in buy-to-let (BTL) property.
1. Positive Signals from the Mortgage Market
Buy-to-let mortgage activity has risen significantly, which is a good sign of confidence in the rental sector. Fleet Mortgages recently reported a 6.5% increase in the number of BTL loans and an 8.9% rise in lending value during the latter part of 2024. Total lending for the year hit £33.2 billion, outperforming even the most optimistic forecasts.
More importantly, there’s been a slight but notable rise in first-time landlords entering the market—suggesting that property remains a go-to asset, even amid economic uncertainty.
2. Interest Rates: Holding Steady, Set to Fall
The Bank of England recently held its base rate at 4.5%. While that means no immediate drop in borrowing costs, there’s widespread expectation of at least two rate cuts later this year. Some forecasters even predict four.
Lower rates would mean cheaper mortgages—and more importantly, improved yields for investors. While it’s impossible to time the bottom of the interest rate cycle perfectly, the direction of travel is clear: downwards.
3. Strong Rental Demand and Yields
Rents remain strong and are still climbing. In fact, the average UK private rent increased by 9% in 2024. This has created an excellent environment for strong rental yields. Combine this with attractively priced properties currently on the market, and you have the recipe for potentially lucrative returns.
At Pennington, we’re seeing net yields ranging from 5% to 8% on well-chosen properties in the local area—with opportunities to boost those figures further through strategic upgrades or by exploring higher-yield rental types like serviced accommodation.
4. Housing Shortages Continue
Despite the government’s commitment to housebuilding—including a pledge to reach 1.3 million new homes over five years—this won’t resolve the supply-demand imbalance overnight. The private rental sector remains a vital part of the housing landscape, especially as many first-time buyers struggle to save for deposits.
Simply put: more renters are chasing fewer homes. And that puts landlords in a strong position.
5. Economic Stability
While the Spring Statement didn’t offer any major surprises or windfalls for landlords, it also didn’t bring any shocks. No new tax rises were announced, and although Stamp Duty reliefs are reverting to previous levels, the market is expected to adapt quickly.
Crucially, the BTL sector has become more professionalised in recent years. That’s made it more stable and less vulnerable to sudden swings. Landlords who embrace this change and work with experienced advisers can benefit.
6. The Renters’ Rights Bill
The Renters’ Rights Bill continues to move forward with the possibility of becoming law by summer 2025. While many of the finer details are still to be finalised, I am advising our Pennington landlords that it is a good time to start preparing for the potential changes — and to understand how they might create opportunities to future-proof portfolios.
There are opportunities to be had by adapting, so to truly stand out as a compliant, forward-thinking landlord. Clear communication, robust record-keeping, and proactive property management will become even more valuable under the new legislation, and these are all areas we work closely on with our landlords, so many are a step ahead already.
What Does All This Mean for You?
Whether you’re a seasoned landlord looking to expand or someone considering dipping your toe into the market for the first time, the fundamentals are encouraging. Yields are strong. Tenant demand is high. Mortgage rates are set to improve. And property prices, for now, remain sensible – creating a potential window of opportunity.
As I said at the start, I’m currently looking to invest in more rental property myself. And if you’re considering doing the same, we at Pennington are here to guide you through the process—helping you find the right property, secure the right tenants, and achieve the best possible return.
If you’d like to discuss what’s happening in the local rental market—or you’ve got your eye on an investment—feel free to get in touch.
[This article is correct at the time of publication and for informational purposes only and does not constitute legal or financial advice. Always consult a qualified professional for specific guidance.]
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Tel: 01473 214343
Email: info@pennington-online.co.uk
Or come and see us at 45 Woodbridge Road East, Ipswich, IP4 5QN
