Given current economic forecasts, which specific property types (e.g., flats vs. houses, new builds vs. period properties) are predicted to offer the best rental yield growth and capital appreciation potential for buy-to-let investors in the UK during 2026-2027?
Quick Answer
In 2026-2027, smaller 1 & 2-bed houses and well-located HMOs are predicted to offer the best rental yield growth and capital appreciation for UK buy-to-let investors, driven by affordability and strong tenant demand.
About This Topic
Discover which UK property types offer the best rental yield growth and capital appreciation potential in 2026-2027. Smaller houses and HMOs are favoured due to affordability, strong tenant demand, and ability to pass the 125% BTL stress test, despite the 4.75% base rate and 5% SDLT surcharge.
This question is part of our Market Analysis category, providing expert guidance on UK property investment.
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