Buy to let investors shunning London
28th Sep 2005, a Wednesday
Buy to let property investors are abandoning the high prices and low capital growth of the capitol and are instead heading to outlying regions of the UK offering a more substantial return on their investment, according to Landlord Mortgages.
"Despite the fact that London has traditionally had a strong buy-to-let market, over the last few years investors have started looking elsewhere," said Lee Grandin, MD of Landlord Mortgages.
"The capital is simply too expensive to provide the type of yields and potential capital appreciation that investors are looking for."
With both high initial outlay costs, low capital growth and badly performing rent yields, mortgage broker Landlord Mortgages say investors are looking outside London.
Buy to let Landlord Mortgages has conducted research showing that London buy to let property investment sales only accounted for 8.54% of the overall rental sales market in the 12 months to August 2005, down by 5% on the same period of 2004.
By way of contrast, buy to let sales in the north west took 13.41% of properties and the east Midlands 10.13%. This is despite London being home to 12% of the UK population and 15% of the country's viable housing stock, said Landlord Mortgages.
Average buy to let property prices over the period were £233,997 in London, compared to £110,923 in the north west and £114,375 in the east Midlands.
"If a landlord took the average 15% deposit they would need to put down on a London property (£33,599) and looked at buying in others part of the country, they would be able to get much better value for money," said Mr Grandin.
"In fact, if they invested in the north-east, Scotland, west Midlands or Yorkshire and Humberside, they would be able to purchase two properties rather than one. While owning two properties will create a greater amount of work, it will spread your risk and help to secure your portfolio against the impact of rental voids," he added.
News source:
28th Sep 2005, a Wednesday
Buy to let property investors are abandoning the high prices and low capital growth of the capitol and are instead heading to outlying regions of the UK offering a more substantial return on their investment, according to Landlord Mortgages.
"Despite the fact that London has traditionally had a strong buy-to-let market, over the last few years investors have started looking elsewhere," said Lee Grandin, MD of Landlord Mortgages.
"The capital is simply too expensive to provide the type of yields and potential capital appreciation that investors are looking for."
With both high initial outlay costs, low capital growth and badly performing rent yields, mortgage broker Landlord Mortgages say investors are looking outside London.
Buy to let Landlord Mortgages has conducted research showing that London buy to let property investment sales only accounted for 8.54% of the overall rental sales market in the 12 months to August 2005, down by 5% on the same period of 2004.
By way of contrast, buy to let sales in the north west took 13.41% of properties and the east Midlands 10.13%. This is despite London being home to 12% of the UK population and 15% of the country's viable housing stock, said Landlord Mortgages.
Average buy to let property prices over the period were £233,997 in London, compared to £110,923 in the north west and £114,375 in the east Midlands.
"If a landlord took the average 15% deposit they would need to put down on a London property (£33,599) and looked at buying in others part of the country, they would be able to get much better value for money," said Mr Grandin.
"In fact, if they invested in the north-east, Scotland, west Midlands or Yorkshire and Humberside, they would be able to purchase two properties rather than one. While owning two properties will create a greater amount of work, it will spread your risk and help to secure your portfolio against the impact of rental voids," he added.
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