A potential surge in buy-to-let investment
- 15th March 2012
- Our News
Landlords anticipating a new wave of investment in London buy-to-let
The recent rise in rental prices in London has led to a notable increase in buy-to-let holdings. An estimated 35% of landlords based in the capital are planning to buy more buy-to-let properties, research by ludlowthompson has shown.
According to London’s estate agent, a mere 6% of landlords plan to reduce their buy-to-let investments in the coming year. At the same time, statistics have pointed to a marked decline in landlords (21%) who are planning to invest in buy-to-let properties outside of London.
Since bank-lending to new residential construction projects has diminished considerably in recent times, rents in London have soared to the frustration of potential tenants. For landlords however, this is a time of opportunity as the all-time high property prices in the capital have resulted in fewer people buying and more people renting. Ludlowthompson’s poll has also led to the conclusion that since the house prices are not set to decrease any time soon, there will be a clear tendency for people to rent for longer periods of time.
Stephen Ludlow, chairman of ludlowthompson, has explained that, “buy-to-let property in London was the preserve of South-East and overseas based landlords, but at present, more and more landlords from across the UK choose London properties for buy-to-let.”
He further added: “London acts as a magnet to young professionals from all over Europe who are looking for interesting work. The Eurozone crisis has led to a significant increase in young Europeans moving to London, creating even more demand for London rental property.”
Ludlowthompson points to a 70% increase in landlords expecting rents to rise in the next twelve months. Interestingly, only a third of surveyed landlords are anticipating a rent increases outside of London.
Stephen Ludlow also commented: “Critics who said that the credit crunch signalled the death knell of buy-to-let have proved to be very wrong indeed.”
At present, more and more landlords from across the UK choose London properties for buy-to-let.
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