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The Outlook for Houses of Multiple Occupation

Posted by Colliers on 14th November 2022 -

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Just as we thought the UK economy was about to recover from the COVID pandemic, 2022 arrived bringing us the Ukraine war and rocketing energy prices with the price cap now over 70 per cent higher than it was two years ago.

During the same period, petrol/diesel prices have increased in price by 48 per cent. Adding to the pinch of purses, average rents in the South West have increased by 9.5 per cent year on year, which is above the national average of 8.3 per cent. Annual pay growth of 5.4 per cent (ONS) is doing little to counter these increases. It’s no wonder that the Resolution Foundation is warning that we are now seeing the greatest fall in net disposable incomes in nearly 50 years.

Against this gloomy outlook, how will residential investment property fare?

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