Landlords 'can still expect good returns next year'

News Category: Industry News

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Despite the ongoing uncertainty about the UK housing market, an industry expert has predicted that buy-to-let will continue to flourish in the coming year.

Frank Knight revealed that landlords had seen their properties perform well over 2007 and added that this was likely to continue through 2008.

The company predicts that central London rents will increase by 14 per cent in total over 2007, but will dip slightly in 2008 - increasing by just nine per cent.

Across the rest of the UK, the property firm said that it thinks rents will remain steady at between six and seven per cent.

"Buy-to-let activity has remained high, confounding many of the more pessimistic economic commentators, and in many markets investment activity has risen to record levels," explained Liam Bailey, head of residential research at the firm.

"Despite ongoing affordability constraints the market has been far more healthy than expected."

A recent study from the Mortgage Works highlighted Newcastle, Birmingham and Glasgow as recent buy-to-let hotspots.

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