New research shows that even more Londoners are leaving the capital – and that it’s the Northern cities that are attracting them. Deterred by the escalating prices of investment properties in London, increasing numbers of people are looking to move to other areas of the country, which is having a knock-on effect on property prices.
Here’s more information.
Investment Properties for Sale… But Not in the Capital?
According to the latest statistics, 74,000 homes were purchased in 2016 by Londoners looking to move out of the capital; 11,000 more than the previous year. This is the highest figure since 2007, and suggests that Londoners are finally getting tired of lack of affordability, and are actively seeking property investment opportunities elsewhere.
The figures show that most Londoners choose to remain in the South, with the majority (80%) seeking properties in the suburban outskirts, the South-West, or the further reaches of the South-East. However, 20% are moving to the Midlands and the North, which has caused property prices to spike in certain areas.
Why the North?
Savvy investors are probably already well aware of the attractions of cities such as Manchester and Liverpool. Both have recently been regenerated, which has driven demand up by a considerable margin, and landlords in the area are enjoying the highest rental yields in the country.
Numbers of investors shifting their focus to the North has increased substantially as a result. In 2016, 20% bought a house in the Midlands or the North – a rise of 8% from the previous year.
Property Investment Opportunities
This growing interest in the North is pushing prices up, as Londoners are happy to pay an average of 18% more than their Northern counterparts. As a result, experts recommend purchasing investment properties here sooner rather than later, to make the most of the prices, which are still competitively low.
Should You Write London Off?
Whilst many parts of the capital are unaffordable for most, it’s still worthwhile searching for buy-to-let property for sale here. Some areas, particularly those being regenerated (such as Canning Hill, Woolwich and Leyton) offer excellent property investment opportunities, with low prices and the chance to boost ROI through capital growth.
However, it’s important to buy wisely. For example, purchasing through a property auction is a wise move, as you’re likely to save as much as 15% off market price, which can equate to thousands of pounds. Likewise, working with a property investment agent makes good business sense, as they’ll be able to help you find a competitively priced house with good tenant appeal.
The Buy2Let Shop Limited
If you’re looking for investment properties in London or indeed the rest of the UK, talk to The Buy2Let Shop. Our team are specialist property investment agents, and we’ve got a wide range of properties on our books that aren’t available to the general public.
In addition to assisting with your property search, we’ll also help with other aspects of your investment. We regularly hold property investment seminars, which can prove invaluable in terms of providing insider knowledge of the market. To find out more, simply visit The Buy2Let Shop website today.