How will the buy-to-let market be affected now we have a conservative government? Arthur examines
Now the threat to the buy-to-let market has been lifted with rent controls suggested by Labour now having been removed, the buy-to-let sector will be more appealing to investors.
Savills suggests that professional investors could commit as much as £30 billion as a result of the election. The north of England will offer attractive opportunities with the appointment of Wharton as northern powerhouse minister, and it is already drawing unprecedented investment.
Jonathan Benarr, a senior investment manager at IP Global, says “even cautious forecasts predict significant price growth” in Manchester with its strong rental market, which has risen 9 per cent in the past two years. “Manchester’s resurgence is gaining a lot of attention from property investors. As we start to see more investment activity again post-election, many will be looking to the north for stable returns. The investment community will be looking to capitalise on the city’s growing labour market, strong transport links and significant government investment,” he says.
However, non-professional landlords should be aware of changes that will occur early next year as the result of EU legislation; this will require greater affordability checks on buy-to-let mortgages.