An interesting new investigation has found that buy-to-let landlords in the UK could see the best capital gains on a one-bedroom flat over the course of the next year.
However, the same survey from Amicus Property Finance found that two-bedroom flats will generate the largest rental yields over the same period.
Gains
25% of British landlords said that one-bedroom flats are to offer the best capital gains in the next twelve months. This was closely followed by student accommodation in towns and cities, with 24%. 22% of residential landlords said that two-bedroom flats would provide the biggest capital gains, with 21% suggesting three-bedroom flats.
In terms of rental yields, 28% of landlords said that two-bedroom flats were likely to be most profitable. 25% said student accommodation in university hotspots would offer the biggest yields, while 21% selected three-bedroom flats. One-bedroom flats (20%) and new build properties (14%) were next most popular.
Will one-bed flats see largest capital gains in 2016?
Winners
John Jenkins, CEO of Amicus, said, ‘the findings show flats are the clear winners over houses and maisonettes for both capital growth and rental yields and this is reflected in our own experience in servicing professional landlords’ short term borrowing requirements.’[1]
‘Despite some uncertainty in the consumer buy-to-let sector as a result of changes to stamp duty charges, we’re seeing a sustained and growing appetite for short-term property finance driven by the tightening of mainstream bank underwriting requirements and the inability of some lenders to act sufficiently quickly to respond to demand,’ Jenkins continued.[1]
[1] http://www.propertyreporter.co.uk/landlords/landlord-tip-1-bed-flats-to-achieve-biggest-capital-gains-over-next-12-months.html