■ However, in the prime markets income returns are a secondary objective for many investors.
Examining the impact of tax policy on the rental market.
■ Rental values in 2015 increased marginally in both prime London and the prime commuter belt.
■ The recent changes to the tax relief for buy-to-let mortgages and the additional stamp duty may push investor demand towards smaller, less expensive units in locations that deliver higher yields.
■ However, in the prime markets income returns are a secondary objective for many investors.
FIGURE 1Prime London figures for December 2015
Source: Savills Research