Private rented sector to remain strong in 2016Make Text Bigger
Demand from potential landlords looking to invest in the private rented sector looks set to remain stable during the second half of this year, according to new research.
Buy to let still remains an attractive income investment as average returns are currently beating all other mainstream investments.
This is also despite the recent introduction of an additional 3% stamp duty surcharge for buyers or second homes and mortgage tax relief cuts.
Mortgage brokers in Scotland appear to be the most confident about the future of buy to let, with 63% predicting that the market will remain the same size this year as in 2015.
The 57% of brokers surveyed in Nottingham predict that the buy to let market will either expand of remain the same in 2015, which is followed by 49% in London.
“Despite there being numerous changes to the buy to let sector and uncertainty in the property market as a whole due to the Brexit vote, the private rented sector is showing stable performance,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.
Opinions on the future of the buy to let market have varied significantly across the UK however, as 71% of intermediaries in Manchester believe there will be a reduction in the sector in 2016, according to the report by Legal & General.
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