Is being a landlord even an investment “opportunity” these days?

I think there is probably a longer term opportunity for some landlords to invest in properties that are close to being carbon neutral (better insulation and/or the capacity to generate their own power) but available at a much higher rent. Tenants won't benefit financially from that...they will trade lower energy bills for higher rents. I think it's more likely that the landlords benefiting will be incorporated landlords because governments all over the UK are punishing the smaller investors.

So whether you can take advantage of that depends upon what properties you decide to buy or build and whether you are able to incorporate without being hit by CGT.

Otherwise I think that your most attractive short-term residential investment opportunity is likely to be short-term lets. Because governments all over the UK have unwittingly encouraged that as well.

Reply to the comment left by Hew De Bowen at 08/08/2023 - 10:43I bought 2 HMOs in Northampton, both converted terraces. I gave up the licences after 2 and 3 years respectively. Yes there was more income when the rooms were let but the voids were greater. Secondly, the tenants were constantly fighting with each other and expecting me to sort it out. Thirdly, They dismantled the smoke alarms. Finally, they often dismantled the door closers. So once a year I had to reinstall everything. But my biggest problem was that the properties felt more like prison accommodation that a home for people to live in. I wouldn't live in one. Not worth the agro for the, sometimes, extra money. And I felt sorry for people forced to live in claustrophobic conditions

It's fast become too much high risk from every corner.. gov, taxes, ever burdening rules and regulations, rent controls threatening, capital gains tax general hearted of landlords etc etc, it's become a horrible business. too little reward whatever way you stack it up. I will be selling when my tennants leave, assuming by then house prices have started to rise again.
There's one area that is gaining my interest though and that's commercial property letting. Long contracts, no maintenance or tennant worry's as aparantly they have to repair and maintain everything, none of the overburdening tenants rights, easily got rid of if they stop paying. At least that's what the gurus are selling, obviously is a lot harder to get into a more expensive deposits, but I think it might be worth looking into. Btl is dead.

Reply to the comment left by Hew De Bowen at 08/08/2023 - 10:43
I have a couple of HMO’s and also a number of single family homes.

HMO’s being managed by agent so this has extra costs and to be honest there is hardly any difference especially with the cost of utilities.

What it does give you though is give you a higher t@rental income per month and to meet lenders affordability criteria you have to meet a certain income on a property per month (not profit) so you can use the higher income per month to remortgage where with a single family unit you would be limited in how much you can borrow.

So I keep my couple oh HMO’s for this especially nowadays with the higher affordability criteria

Probably a lot more wear and tear on an a HMO, plus high tenant turnover, compared with a single tenancy.
Plus higher risk of fines, due to not meeting licencing requirements, etc.

Thank you for all your replies very interesting views..

Maybe I should add that my BTL definitions are.. Short term is 5 or so years, medium term would be up to retirement age and long term is until I push out daises. I understand that BTL could still be lucrative in the medium to long term, but for now I am comparing other short term options until BTL becomes attractive again (or at least my example works better than it does today).

@SteveFowkes I did mention that property price can increase overtime. In my area the prices are very slow to increase so I don’t expect much when it comes to re-mortgage time and then when it is time to sell there are selling fees and CGT/Profit tax to pay and the stamp duty/buying fees when first purchased should also be detected to come up with a true ROI.

@Hew De Bown I couldn't find any 50% LTV rates for a limited company but I find it hard to see that rate being so much lower that it would beat the same money invested in £56k cash ISA.

@Dino Saw I guess that is the conclusion I’m coming to. Keep the money armed and ready in a high interest account ready to pounce when the rates drop and/or a good motivated sale arises. Essentially its now all about the purchase price if I want to make the numbers work.

Reply to the comment left by Hew De Bowen at 08/08/2023 - 10:43
It is for sure worth checking and the HMOs give greater returns. Even in London you can achieve closer to 10% just on the invested cash.