London landlords look North for buy-to-let investments
A rise in the proportion of buy-to-let applications in the North of England over the first three quarters of this year is being driven by investors from London, new data suggests.
The most significant growth was observed in the North East at 77.6 per cent, with Yorkshire and the Humber just behind this at 73.2 per cent, according to a report from Commercial Trust Limited.
And the majority of buy-to-let purchase applications are taken out in London.
The capital has seen a substantial drop in business share during the first three quarters of the year, with the number of buy-to-let purchase applications falling by 25.4 per cent.
Andrew Turner, chief executive at Commercial Trust Limited, said greater demand and lower prices were attracting investors to the region.
“With property prices typically cheaper – and a strong demand for private rental homes from a workforce in regenerated cities and from thriving student populations, there is plenty of incentive for those looking to invest in property, to look North,” he said.
“The latest Your Move Index confirmed that the North East and the North West deliver the best yields for buy-to-let landlords in England and Wales, so it is little surprise to see shrewd investors taking advantage of low mortgage rates, high rental demand and cheaper property prices.”
Alex Huntley, Head of Operations at Simple Landlords Insurance, added: “We’re seeing more and more landlords investing in properties further afield from where they’re based. The impact of the 3 per cent stamp duty surcharge on second homes is typically more expensive in London and the South East, so it’s no surprise we’re seeing that growth up North.
“Just remember that if you’re not on the doorstep you do need to research your area carefully. You also need to make sure you’ve got systems in place for day-to-day management, emergencies and regular inspections.”