Why Buy to Let Remains Strong Even After the Budget
The Budget added a 2% tax rise for landlords, but this doesn’t change the strength of the rental market. Demand remains high, supply is tight, and the fundamentals of buy to let are still firmly in place.

It’s also important to recognise that increases like this often become a tenant tax. When landlord costs rise, rents adjust. This has been the pattern for years and will continue while demand outweighs supply.

The market is still on solid ground with rents forecast to rise by 12%
Across our area, good quality homes continue to let quickly, and void periods remain minimal. Savills forecasts 12% rental growth over five years, which helps offset rising costs and supports long term income.

What this means for a typical two bedroom home
A well presented two bedroom home currently rents for around £1350 per month. With 12% rental growth, this is expected to rise to around £1650 per month in the coming years.*

UK house prices set to rise by 24.5%
Savills also expect property values to grow by 24.5% over the next five years. That equates to around £86,300 added to the average UK home. This means landlords benefit from rising rents and rising property values, a strong combination even in a higher tax environment.

The bottom line
Despite budget changes, buy to let remains a strong long term investment.

Across our area:
• Demand is high
• Supply is limited
• Rents are rising
• Property values are forecast to climb
• Landlords who take the long view remain in a very strong position

* Savills, UK rents set to grow by 12% over the next five years

** Savills research, UK residential forecasts

Disclaimer
This article is for general information only. Forecasts are not guaranteed and may change. It should not be relied upon as financial, legal, or professional advice. While every effort is made to ensure the information is accurate at the time of publication, no responsibility is accepted for errors or omissions. Readers should seek independent professional advice before making any decisions based on the information contained in this article.