What about the impact of rates?

“Regarding rates, while there is a widespread expectation that rates will fall next year, I do not foresee them returning to anything like the historical low levels we were used to three years ago,” Daly said.

Instead of waiting for the government to improve the plight of landlords, Daly said the industry itself should be looking at ways it can help them tackle affordability issues, as well as assisting property professionals to invest in higher-yielding properties.

“For example, lenders could consider moving into the Purpose-Built Student Accommodation (PBSA) investment market, as well as improving lending criteria for semi-commercial properties or removing holiday-let unit limits,” he said.

On the regulatory front, Daly added that it looks as though the Renters Reform Bill will come into law at some point during the second half of 2024.

“The bill is still working its way through the House of Commons and has yet to be passed to the Lords, so we do not know what the final law will look like, but investors will need to stay abreast of the bill and its ramifications,” Daly said.