child mortarboard gbp briefcase bath coffeecup tree twitter search crosshair fax house papers sort house-pound brochure list-items notes printer video-camera video virtual-video bath bed camera floorplan heart-empty heart-filled heart-empty-thin heart-filled-thin sofa calculator compass share clock list map-pen map-pin pencil save business-card letter phone heard people pointer cross linkedin google-plus facebook arrow-right close triangle-down my-wink my-wink-thick house-circle loading-spinner bell close-circle dog link pinterest school transport wardrobe arrow-up one two three four five six seven tick

What is the future of buy-to-let in Britain?

It’s the question on every landlords’ lips: what is the future of buy-to-let in Britain?

It's the question on every landlords' lips: what is the future of buy-to-let in Britain? Since April 1, they have had to pay 3 per cent extra in stamp duty. Prudent buy-to-letters rushed to acquire new properties before the stamp duty hike.

So it would be natural to expect some slow-down in activity now that the deadline has passed. But only a fool would predict the demise of buy-to-let as a popular investment option. In fact, the very reason George Osborne is trying to damp down the buy-to-let sector is for, that many investors – small, medium and large – it remains the best option in town.

Interest rates remain at an all-time low. Rises are promised/threatened, but continually deferred. The stock market is wobbly. Investors are spooked by the fragile state of the world economy, after the sharp falls in the Chinese stock market, and the continuing uncertainty over the EU referendum (June 23). Yet UK property prices – for the moment, at least – are continuing to rise slowly but steadily.

According to recent figures by the Office of National Statistics (ONS), house prices in England rose by 8.6 per cent in the twelve months to the end of January. In the prosperous South East, the figure was even higher, at 11.7 per cent. Nobody is expecting such rises to continue indefinitely, but even with so many uncertainties in play, most experts predict that the long-term trend will maintain an upward trajectory.

Last summer, for example, the Royal Institute of Chartered Surveyors predicted that house prices in the UK would rise by 25 per cent over the next five years. That is hardly a stratospheric rise, but for the sophisticated buy-to-letter, prepared to take a long-term view, it certainly beats leaving the money in a deposit account.

Rental prices have also been rising, although at nothing like the same rate. The average rental price paid by private tenants in the UK rose by 2.6 per cent in the twelve months to January 2016, according to ONS figures.

There is nothing in the statistics to encourage buy-to-let investors to think they will become overnight millionaires. Profit margins will remain tight, after the Chancellor's tinkering. But there is a great deal to persuade them to regard property – as it has been so often in the past – as a sensible long-term investment.

Are you looking to sell, buy, let or rent? Contact your local Winkworth office, visit


Related posts

Top tips on buying in a Conservation Area

Introduced over fifty years ago to protect the features that make a place unique and distinctive, living within a Conservation Area is different from owning a listed property. Here we explain how and why.

Read post

November 15, 2019

Where to find the best Sunday Roasts in London

There's nothing we love more than a hearty Sunday roast, especially on a lazy weekend as we slide into autumn. Whether you’re a chicken, beef, or nut roast lover, we all have our favourite haunts for this traditionally British meal.

Read post

November 12, 2019

Renovating a house: How long does it actually take?

Renovating a house? Get clued up with our guide covering everything you need to know, from finding and assessing a property to structural and design issues.

Read post

October 30, 2019

Find your Local Office

Find your Local Office

Speak to people who, quite simply, love their patch and love what they do.

Get a Free Valuation

Get a Free Valuation

Thinking of selling or letting your property, or just interested to know what it is worth nowadays?