A new report from commercial real estate and investment firm CBRE spells good news for buy to let property investors, with the new data predicting rent rises of 11.4% by 2023.
The report outlines anticipated growth forecasts for each year, with the firm believing rents are likely to rise 1.3% in 2019, followed by 1.9% in 2020, 2.5% in 2021, 2.7% in 2022 and a further jump of 2.6% in 2023.
Taking into account a number of important factors which might affect the property market – including politics, the UK’s economy and even technology – the report gives a balanced view of what shape the sector might be in come 2023, with the news of rent rises likely to please landlords who are planning on retaining or expanding their portfolios in the coming months and years.
Miles Gibson, the Head of UK Research at CBRE, noted that despite subdued growth anticipated for 2019, the lack of supply and low interest rates for mortgages will hold prices up in the future, with weak supply and strong demand ‘creating a lot of interest among investors’.
And the good news doesn’t stop there; CBRE has also provided some insight into the future performance of house prices in the UK, with the same report highlighting a 13.1% rise in property prices over the same period, broken down with a rise of 1.8% this year, followed by growth of 2.3% in 2020, 3.4% in 2021, 3.7% in 2022, and finally 1.3% in 2023.
With more and more people relying on renting as a long term alternative to buying, it is no surprise that the buy to let market is flourishing; and forecasts pointing to sustained growth in both rents and house prices as a result of a lack of affordable, high quality rental accommodation are likely to spur on portfolio landlords in 2019.
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