A special report commissioned by The Mortgage Lender to mark the launch of its buy-to-let products has found that buy-to-let investments will continue to offer attractive rates of return compared to other asset classes, but investors will increasingly search out cheaper and higher yielding properties.

The report, authored by housing economist, Martin Ellis, also predicts that interest rates are set to rise by a quarter of a point in the next few months and that house price growth will have slowed to between 2%-3% a year by the end of 2018.

The report covers the UK economy, the UK housing market, the private rented sector, buy-to-let mortgages, the impact of tax and regulatory changes alongside prospects and forecasts. It is available to download in full at

Peter Beaumont, The Mortgage Lender deputy chief executive, said: “Our special report on the buy-to-let market looks at the macro and micro economic environment for buy-to-let investors and the factors that are likely to influence landlords’ investment choices over the coming years.

“It also highlights the need for a flexible and competitive buy-to-let mortgage market to facilitate continuing investment in a sector of the housing market that has grown in significance as home ownership has declined and demand for good quality residential property has increased.”