View more on these topics

&#39London BTL yields are lowest in the country&#39

Investors are getting lower returns from buy-to-let properties in London than anywhere else across the country, according to the Association of Residential Letting Agents.

Its new quarterly survey of the market conducted during the summer months covered 500 letting agents and reveals that the average rate of return in central London was 5.6 per cent compared with 6.1 per cent in the rest of the South-east and 7 per cent across the rest of the country.

It found oversupply is a more significant problem in central London, where 84 per cent of agents reported too many properties, compared with 63 per cent in other areas of the South-east and 47 per cent in the rest of the country.

Arla says the survey underlines the significant differences in capital values across the country, with the average London property valued at £258,000 compared with £160,555 in the rest of the South-east and £106,000 in other areas.

Since April, there has been an increase of 6 per cent in the average values of BTL properties from £156,700 to £166,100.

But Arla says in central London the average growth was only 0.1 per cent from £257,742 to £257,485.

In the rest of the South-east, the average rose by 9.8 per cent from £146,200 to £160,500 and across the rest of the country by 6.7 per cent from £99,300 to £106,010.

Arla chairman John Crossley says: “The first issue of this new quarterly survey series shows that the private rented sector is an active, fluid market.

“Investment in the private rented sector remains a sustainable investment as it takes account of the fluctuations both of capital appreciation and rental demand.”

Recommended

Three quarters of Chelsea customers to pay loans off early

Nearly three quarters of borrowers plan to repay their loan early according to a survey from Chelsea Building Society.The society says 72 per cent of its Flexiplan customers say they hope to repay their mortgage earlier than the agreed terms. Chelsea says they have chosen the Flexiplan Discount Mortgage because it allows for overpayments.The survey […]

Collins Stewart – Collins Stewart Growth Fund

Monday, September 16, 2002 Type: Oeic Aim: Growth by investing in international bonds, equities, cash and other specialist investments Minimum investment: Lump sum £5,000 Investment split: 100% in international bonds, equities, cash and other specialist investments Isa link: Yes Pep transfers: Yes Charges: Initial 3%, annual 1.5% Commission: Initial 3% Tel: 020 7523 4575

Widow of opportunity

Mrs Williamson is 58. She was widowed 18 months ago and is continuing to receive an income from her late husband&#39s Equitable Life drawdown personal pension. She needs some, but not all, of the income and is extremely concerned about the future of Equitable Life. What should she do with her pension? Mr Williamson sold […]

Moore&#39s code

I am always rather suspicious when talk of “morality” surfaces in the City of London. The London Stock Exchange crest may still be emblazoned with “My word is my bond” but the old world of gentlemanly capitalism died years ago, if it ever really existed.But it is “morality” or lack of it, that is a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment