The latest Halifax house price index results, which show mixed fortunes for the housing market, should be seen as a spur for landlords to expand their portfolios.
The Halifax says that average UK house prices grew in March on a quarterly basis, by 2.0%, with annual growth slowing to 0.3%, from 1.6% in February.
But compared to a month ago, the price of a UK property fell 1.0% or £2,908 in cash terms, with the average property now costing £288,430.
That presents an opportunity for landlords, claims Yasin Patel, co-founder of investment specialists Autarky Sukuk.
He comments: “House price growth experienced a slight cooling in March, but annual prices are still at healthy levels considering the turbulence of last year.
“Inflation is proving a tricky beast to fight and this is prompting fears that the Bank of England will be much slower to lower interest rates, which keeps the cost of borrowing at more punitive levels.
“Landlords should be assured that now is a good time to buy. Slowing house price growth brings more opportunities to grab a bargain. With rent rates at record highs, the potential yield that investors can get on returns is still attractive.
“The next few months will be crucial for the industry, as the warmer months are typically some of the busiest in the calendar year. If we see this slowdown continue, we may need to be more realistic about how big the great property bounce-back will be.”
