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Buy to Let Market to Offer Lucrative Opportunities in the Coming Years

It's good news for property investors over the coming years, according to predictions from the Centre for Economics and Business Research.

It has been suggested by the Centre for Economics and Business Research (CEBR) that although there may be some turbulent times ahead, the buy to let market will still present investors with lucrative opportunities.

The CEBR claim that although many landlords have seen the effects of recent changes such as the rise of stamp duty and changes to tax regulations for landlords, it is believed that due to the continuing rise in both house prices and rental rates, the market will remain robust and continue to be a profitable option for both lenders and investors.

Forecasts from the CEBR suggest that landlords could see a slight fall in yields due to house prices rising at a faster pace than rental rates, with predictions of overall yields at an average of 3.5% in 2027.

In addition to this, it is expected that across the next 10 years the number of UK homes within the private rented sector will rise by 7% to 28%, meaning almost a third of homes in 2027 will be rental properties as the demand for rental accommodation only continues to grow.

Over the past year, many investors have taken a look at their portfolio due to their concern surrounding the economy following the Brexit decision and more recently the election. However, many property experts believe that while the market isn’t bulletproof, the current lack of supply will keep the property prices stable.