Escaping the city and moving out of London?
- 25th October 2011
- Selling Property News
Letting rather than selling when moving away from London might make more financial sense.
In the last year, London rents have increased by more than 10% in some areas.
Those higher rents mean that London homeowners who are planning on selling up and leaving the capital might be better off letting their London property instead.
Family homes in London frequently let for as much as £1,500 per week, which is far more than typical rents outside the capital. The rental price achieved for the London homes below in a country county such as Suffolk is more likely to be £1,500 per month.
Here are some current examples available from ludlowthompson:
3 bedroom, £1500 p/w - Collingham Road, Earls Court, SW5
4 bedroom, £1500 p/w - Draycott Place, South Kensington, SW3
5 bedroom, £1500 p/w - Fernedene Road, Herne Hill, SE24
Average rents in London are almost double those in other regions. In September the London average was £1,029 per month whereas in the West Midlands it was only £550.
Traditionally, when families have moved out of London they have exploited the capital’s higher property values to buy a bigger property or pay down a large chunk of their mortgage. Now they might choose to exploit the capital’s higher rents instead.
Stephen Ludlow, Chairman of ludlowthompson, comments: “Clearly not everyone is going to want to let their London home and rent themselves when they move. However, London rents have been increasing so much that it is now worth doing the maths and comparing the two options.
“Holding on to a London property could be a quick way to pay off the mortgage on the new house, while retaining a buy-to-let asset for the long term.”
“Anyone considering doing this would probably need permission from their mortgage lender, as most loans for owner occupiers will not allow the property to be let.”
Holding onto a London property could be a quick way to pay off the mortgage.
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