Property investors shying away from London, says research study |
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Thu, 29 Sep 2005 09:05
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LONDON: Property investors are shying away from London because of the prevailing high prices there. They are in turn looking at other regions, according to a research report by Landlord Mortgages, a broking firm operating in the buy-to-let property segment.
The capital accounted for only 8.56 per cent of all rental properties bought in the last year. The average price of a buy-to-let property in the city was 223,997 pounds, whereas in the North West, it was 110,923 pounds and in East Midlands 14,375 pounds.
The most popular alternative for buy-to-let investors is the South East (22.54 per cent). The North West (13.41 per cent) and East Midlands (10.13 per cent) too were choices.
Among the least popular regions are Scotland (2.71 per cent), Wales (3.42 per cent) and East Anglia (5.71 per cent). Landlord Mortgages said the low level of investments in these regions may be on account of non-availability of suitable buy-to-let properties there.
The firm's managing director Lee Grandin said the capital is simply too expensive to provide the type of yields and potential capital appreciation that investors are looking for.
Grandin said if a person preferred to invest in the North East, Scotland, West Midlands or Yorkshire and Humberside, he would be able to purchase two properties rather than one.
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