Buy-to-let-investors are set to make consistent returns over the next 13 years as rising rents and a house price recovery boost the sector, according to two reports on the property market.
Rents have already increased by 4.3% over the past year and are likely to be driven further upwards by a 'scarcity' of mortgage finance and a shortage of good quality properties, the Royal Institution of Chartered Surveyors (Rics) said.
Chartered surveyors predict rents will rise by 3.9% on average across the UK over the next 12 months, the Rics residential lettings survey for the second quarter of 2012 found.
In the three months to July, the number of properties coming on to the market was little changed, the study found. But demand among tenants is continuing to grow and has outpaced the change in supply since the first half of 2009, although the gap has recently narrowed, Rics said.
These figures are complimented by separate research by PricewaterhouseCoopers (PwC), which suggests that those investing in buy-to-let will make capital as well as rental returns in the long term.
Should you be considering to invest in a buy-to-let property why not come into your local Intercounty branch and have a chat with a member of our team.
Source: Guardian.co.uk, Friday 10th August. http://www.guardian.co.uk/money/2012/aug/10/buy-to-let-landlords-profit-rents-rise