Buy-to-let investments will continue to offer attractive rates of return compared to other asset classes, but investors will increasingly search out cheaper and higher yielding properties, according to a new special report commissioned by The Mortgage Lender.
The report, which has been compiled by respected housing economist, Martin Ellis, also forecasts that interest rates will rise by at least 0.25% in the next few months and that house prices will increase by no more than 3% this year.
The report, which covers the UK economy, the UK housing market, the private rented sector, buy to let mortgages, the impact of tax and regulatory changes alongside prospects and forecasts, is available to download in full by clicking here.
Peter Beaumont, deputy chief executive at The Mortgage Lender, said: “Our special report on the buy to let market looks at the macro and micro economic environment for buy to let investors and the factors that are likely to influence landlords’ investment choices over the coming years.
“It also highlights the need for a flexible and competitive buy to let mortgage market to facilitate continuing investment in a sector of the housing market that has grown in significance as home ownership has declined and demand for good quality residential property has increased.”