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Spotlight: Prime Rental Markets

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.

■ However, in the prime markets income returns are a secondary objective for many investors.

Figure 1

FIGURE 1Prime London figures for December 2015

Source: Savills Research

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