2021 is shaping up to be a big year of the UK buy-to-let sector. Huge, in fact. Hamptons has just reported a record number of new limited companies incorporated in 2020 with the specific purpose of holding buy-to-let properties. 41,700 such companies were incorporated in 2020, meaning that the number of them has doubled since 2016, when the government began ramping up the tax burden faced by buy-to-let investors.

So, will Covid and Brexit combine to finally dent interest in UK buy-to-let investments, when even the prospect of paying more tax hasn’t deterred investors? Unlikely, says Dale Anderson, Managing Director of Fabrik Invest.

Fabrik Invest flags up buyers from the Middle East, Hong Kong and South Africa in particular when it comes to key investor demographics overseas this year. The company also points to the impact of interest rates and fiscal policy on the 2021 buy-to-let sector.

At present, interest rates remain at the historic low of 0.1%. Not only that, but the Bank of England’s Monetary Policy Committee has been openly looking at the potential impact of a negative rate since June 2020. Such a move would be the first time in history that the UK has had a negative interest rate and would be excellent news for borrowers. Even without a further reduction, the current low makes mortgage borrowing in 2021 an attractive prospect.

So, where will investors be focusing during 2021? On regional markets mainly, based on Fabrik Invest’s insights. Michigan Towers, in the heart of the MediaCityUK site in Salford Quays, Manchester, epitomises this regional trend. The contemporary homes have been designed to suit working professionals who want everything on their doorstep, while benefitting from high quality interiors and impressive views.

Covid will come into play in this respect, as demand for apartments with communal gardens, rooftop terraces and innovative home-working spaces continues to increase.