Landlord Mortgages annual BTL review reveals property investors are deserting London due to high property prices.
Only 8.56 per cent of all rental properties purchased over the last year were in London, 5 per cent down from August 2003-04.
This is a low percentage considering that the ODPM estimated in 2003 that 15 per cent of England’s viable residential stock is based in London. According to Landlord Mortgages, the average BTL property in London costs 223,997.
The most popular region to invest in over the last year was the south east, making up 22.54 per cent of total investment. The least popular regions were Scotland – 2.71 per cent – and Wales – 3.42 per cent.
Landlord Mortgages managing director Lee Grandin says: “Despite the fact that London has traditionally had a strong BTL market, over the last few years investors have started to look elsewhere. The capital is simply too expensive to provide the type of yields and potential capital appreciation that investors are looking for. Following the rate reduction earlier this month, we have seen a great deal of interest from investors and anticipate that many of them will take this opportunity to invest in ‘good value’ properties outside the capital.”