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Leave London to boost BTL yields, says Charcol

National mortgage broker Charcol is warning that some buy-to-let investors should quit London and look to invest in properties in the regions because of falling rental yields.

The warning comes as figures from its sister firm Bradford & Bingley Letting Agents reveal the North-west of England has seen a 1 per cent increase in average rental yields over the past year to 11 per cent while returns in the South-east have fallen to as low as 3 per cent.

It says this shows the buy-to-let market is not all doom and gloom if people look to diversify to areas which have recently experienced a property boom.

Charcol senior technical manager Ray Boulger says the firm has clients who bought properties to rent in London a few years ago but are now having difficulty with maintaining rental income and finding new tenants.

He says it tends to be experienced landlords with more than one property who see the commercial sense in switching their portfolio to less saturated areas while more amateur investor will sell and leave buy-to-let.

Boulger says: “In the last three to four months, we have had a few people doing this – they take the profits made in London and invest elsewhere where the market is not oversupplied and yields are higher. It is not a flood from London and it helps landlords who remain there.”


HSBC Republic makes guaranteed hedge fund of funds debut

HSBC Republic Investments has introduced its first guaranteed fund of hedge funds with a minimum investment of $10,000.The HSBC Republic alternative wealth protector fund invests in around 25 hedge funds through an underlying fund, HSBC Republic wealth protector. Unlike the underlying fund, the HSBC Republic alternative wealth protector fund guarantees at least the return of […]

Honey, the kids shrunk my income

Continuing the theme of future financial provision for children, it has to be said that very few of us are likely to have sufficient liquidity to meet significant expenditure needs such as the cost of further education or the cost of a deposit for a home or assistance with its purchase. Much has been written […]

Julian Gibbs

Last month saw the launch of Nvesta, a specialist financial product provider that designs, implements and manages investment plans for UK investors. It is part of Eurolife Group, a market leader in this sector for many years. Its first offering is the Capital Secure FTSE plan, which guarantees a 100 per cent capital return plus […]

Raising standards consults on mergers

If a merger were to take place between two life offices both having the Raising Standards Quality mark, they could retain their kitemark according to proposals published by the scheme this week.But if a life office were to take over or be bought by a rival without the quality mark, the other life office would […]


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