Is buy-to-let back?

Rents have risen by the highest amount in two years as landlords hike prices amid a Government clampdown on buy-to-let properties. Bills have gone up 1.3% on average in the year to May – the biggest annual rise since September 2017. The new figures have been analysed by the Office of National Statistics (ONS) which monitors national rents. It means that someone who was paying £500 a month rent in May 2018 is now forking out £506.50 a month or an extra £78 a year.
But in places like London where rents rose by 0.9% in the past year, tenants paying the average £2,034 a month, according to property portal Rightmove, have seen bills rise by £219.68 a year. At the same time there are signs that buy-to-let landlords may be returning to the market, encouraged by cheap property prices and rising yields. Buy-to-let investors have been steadily retreating from the market since the government introduced a 3% stamp duty surcharge on second properties in 2016 and reduced landlords’ ability to offset mortgage interest against profits.
Commentators believe slowing house-price growth and falling prices in some areas are helping to boost landlord yields. This makes the sector a little more appealing, despite the policy hurdles.

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