The UK housing market is on track to build on the upward trajectory it has exhibited since the end of the lockdown, benefiting from both legislative, and sector specific, support. Aggressive competition amongst lenders has exerted downward pressure on the typical cost for a 5-year 80 per cent Loan to Value fix for instance, which has dropped from 2.98 per cent in March to 3.78 per cent in August according to Moneyfacts’ buy-to-let product data.

Experienced landlords are taking the opportunity to expand their portfolios, whilst new entrants are strongly incentivised to take advantage of stamp duty cuts to invest in buy-to-let properties. This enthusiasm is justified not only from the supply side, with highly available & inexpensive capital as well as government incentives, but from the demand side as well.

Global information and economics provider, IHS Markit, undertook sentiment analysis using recent survey data, which shows that household expectations for future house prices have turned positive in August, after four months of negative expectations. In addition, with forecasts of 11 per cent annual house price growth in October 2020 (rising from -1.4 per cent in August) landlords recognise the potential for capital growth and rental yield upside available in the market going forward. Such price forecast research from reallymoving, a provider of quotes for home moving services, cites exceptional post-lockdown pent-up demand driving this rally.

A key long term trend in the UK property market is emphasised in an Association Of Residential Letting Agents (Arla Propertymark) market outlook report, which indicates that rental demand has continued to outpace the supply of new homes. This is a key factor underpinning rental growth. Moreover, the latest Hometrack data suggests that mortgage applications rose in July with buyer demand increasing by 20 per cent on the year.