Any reasons not to cave into the fear?

Yes, in a similar sitaution. I can probably live off the proceeds of my house sale plus 2 flats I have purchased but need to scale to be in a better financial position.

Any advice welcome.
LB

Depends, personally I think, on if you are cash buying a BTL or needing a mortgage and if a mortgage what your loan to value (ie how much deposit you're putting down) is.
But property prices will fall (further??) in 2025 when the aEPC requirements for landlords change.
We don't really know what is happening re the Renters Reform Bill and there are many unthought through bits of drafting in it.
As interest rates are increasing might be worth looking into an investment bond and then BTL when prices fall in 2025 and the additional legislation known.
Also there will be further rent defaulters until alternative energy sources are up and running and give stable cheaper than current prices and imminent further increases.
And the Russian despot's intentions or actions re further advancement into other ex Russian Federation counties is established ie whether the war he has started is stopped or not.

Be greedy when others are fearful and be fearful when others are being greedy.
Any fool can make money with property when the good times are around it is surviving the bad times which takes brains.
Buy stuff where people will want to live. If Hyacinth Bouquet the comedy character from tv would want to live there then you should buy.
A badly converted flat will always be a badly converted flat. Who wants to live in a brutalist high rise? Who wants to have neighbours from such flats? Is proximity to a betting shop / tattoo parlour important?
This will be a long term investment. Buying a fixer upper to flip out will be a very difficult exercise this coming year. A fixer upper to rent would be preferable.
And the most important - do not be under capitalised.

Be aware before anything else that you are prepared to be a landlord. Its not just about making money or buying bricks - this is a people thing. You are intending to house people and with that comes stress, sleepless nights and you need to be FULLY aware of your legal obligations too. When you need to evict (yes it will happen) you need to be prepared for a fight. People just cant find another property to move into. They will feel backed into a corner and will see they have no option but to stay and fight it out with a LL. It can get nasty and expensive.

Do your groundwork! Make sure you know your financial boundaries and have room for manouvre as the only thing sure as eggs at the min is everything is in flux.
Sit tight for a bit and judge the market. Get a feel of the areas you want to buy in.
This will be a long term commitment but always have an exit strategy in mind.
There are some long term LL's on here and if they are leaving the market....you need to be aware of why. Its not an easy job anymore....

As well as buying in a limited company but properties with an Energy Performance Rating of C or better.

Don’t go above 50% LTV If you can avoid doing so to help with more normal interest rates in the future.

Yes there is a lot of new legislation on its way but once landlords meet this then I believe being a residential landlord is still a viable sector.

There will be a shortage of property for many years resulting in PRS being vital to the whole rental sector with leveraged Capital Growth.

• Be aware that we are in a house price bubble and that there is talk of a downward adjustment of potentially 20%.
Do you need to buy now or can it wait a year or two until after the adjustment. Having said that there is no ideal time to start and you can keep putting things off until the time is "right".
• Property investing is not a passive investment. You have to manage and look after your properties and tenants.
• Get the limited company structure right from the start. Trying to change things when there is value in the company can be expensive and more difficult than doing it from the beginning.

Reply to the comment left by DSR at 18/10/2022 - 10:44
A well reasoned response.

I think the key consideration is to have sufficient reserves of cash [and fortitude] to survive the coming storm.

I had my first eviction last year after 21 years in BTL. It cost me £20k+ and knocked the stuffing out of me. I've retired, sold that property, and will sell my final property as soon as I can.

I fear for those just starting their property journey.

Reply to the comment left by Simon Lever - Chartered Accountant helping clients get the best returns from their properties at 18/10/2022 - 12:57
"there is talk of a downward adjustment of potentially 20%."

There is every year.

I advise you to look on the Councils website in the area you intend to buy to see if you will need a license. In some areas all houses need a Licence.

Are you interested in a family let or a couple or unrelated people. If it's unrelated people of three or more (it depends on your Council) then it's a HMO with all sorts of difficulties. 

You should also look at the EPC of any house you consider to ensure you can get the EPC up to a C by 2025.

You should look at the Renters Reform Bill to see if this will cause you any difficulties. It will be passed soon, early 2024. It will ban AST's which allow fixed term tenancies. All tenancies will have to be periodic. No fault evictions (Section 21) will be abolished too. 

I'm in the student market, so mine are HMO's which have done very well but are soon to be completely decimated by the Renters Reform Bill, unless of course (little hope) it will be modified. I recently considered buying another one but have backed away. I think we are entering choppy waters. Good Luck.

Reply to the comment left by NewYorkie at 18/10/2022 - 13:32
if well established LL's are fleeing for the hills - that says it all.

You can ride out a storm possibly - but a tsunami of unknowns in the current market is a game for the chancer or the risk taker only.

Bearing in mind the ££££'s laid out, if you want to invest in a property only - buy and keep it empty. If you want to generate an income too - then you have to go in eyes wide open!