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There can be little doubt that 2023 has been a year of transition for the UK property market, with noticeable and significant challenges confronting investors and intermediaries alike.

Most significantly, the Bank of England’s aggressive, inflation-battling rate hiking cycle elevated the base rate by 1.75 percentage points in the first eight months of the year, culminating in a 15-year high of 5.25 per cent.

As such, balancing rapidly rising mortgage repayments with rental income has been one of the prominent difficulties for landlords in the past 20 months or so.

This is corroborated by a recent Butterfield Mortgages’ survey of BTL landlords, which found nearly half (49 per cent) saw rising interest rates as a key challenge when managing their property investments this year.

Despite these hurdles however, there are indications that suggest a positive swing in the market.

At its past two meetings, with inflation falling below 5 per cent, the BoE voted to maintain the base rate at its current level, which has allowed the lending landscape to stabilise. Accordingly, BTL landlords appeared to gain a sense of optimism moving into 2024.



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