New analysis of the BTL market forecasts an opportunity for landlords, revealing exactly where the best investment opportunities are in 2018.
In spite of a barrage of tax changes making it harder to make money on buy-to-let, there are still pockets of the market where investors can achieve an average yield of 5.4%, according to the UK Buy to Let Report, produced by Shawbrook Bank and compiled by the Centre for Economics and Business Research (CEBR).
Looking at house prices, the research from Shawbrook Bank predicts annual property price inflation to be more subdued in the five years up to 2023 than over the last few years. The report forecasts average annual house price predictions for the years 2017 to 2023 to be at 4.5%, compared to an average of 7.0% for the high-growth years of 2014 to 2016.
With landlord investment in London slowing, the report expects the North-West region and the city of Manchester in particular, to be the top new investments hotspots due to higher rental yields. The average UK house price is currently £228,000, which is 43% higher than the average house price in the North West - £159,000. The North West leads the ranking with an average yield of 5.4%, followed by Scotland with 5.3% and Yorkshire and the Humber with 4.9%.