With savers continuing to receive poor returns from banks and building societies, thousands of people unsurprisingly continue to turn to residential property as a means of supplementing their income, supported by record-low mortgage borrowing rates, solid demand from tenants and stable yields, as buy-to-let consolidates itself as the investment of choice.

Despite a challenging 2018 for the buy-to-let market, characterised by tax and regulatory changes, investment in buy-to-let continues to outperform most major asset classes, as Britain’s rented sector continues to expand, with a sixth of the population – some 10 million people – now living in accommodation rented from private landlords, which is roughly double the volume recorded in 2000.

Looking ahead to 2019, Belvoir predicts that property will remain a good long-term investment for the following reasons:

+ In a market with falling residential property transactions more people are likely to rent.

+ Property values are still low in many areas and rental income is likely to increase in 2019.

+ Rental yields remain good, ranging from 4.5 to 12% in some areas.

+ Good quality rental properties are still in high demand.

+ BTL remains a good, solid long-term investment.

+ Interest rates remain low, allowing investors to lock in low-cost financing, helping to support a stable long-term investment.

+ Mortgage free cash buyers are able to pick up some fantastic investment properties, including HMOs with higher yields.