Property consultancy company Knight Knox has predicted that the year 2018 will be highly beneficial to landlords in the UK owing to solid yields and good rental growth.
“Landlords investing in the UK should expect high demand this year with solid yields and good rental growth,” said in its predictions for 2018.
The company said that house-building and government incentive schemes will be plentiful in 2018 and they could well kick-start further building. It observed a boom in the off-plan property, and the increase in activity will likely see high demand from renters.
With the government announcing the abolition of stamp duty for first time buyers, it is likely that there will be an allocation of significant resources into the first-time buyer market.
“Landlords investing in either residential or off-plan can remain confident that the demand for rented properties will remain high and so too the pressure on rent rises,” Knight Knox contended.
It is predicted that house prices will grow by up to 3 per cent next year, with success in homes typically bought by first-time buyers. In addition to growth in the capital value of homes, rental growth is also expected to grow over the next 12 months as supply and demand largely remains the same.
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With Philip Hammond announcing the abolition of stamp duty for first time buyers, it is likely that the government will plough significant resources into the first time buyer market.