A city of potential tenants
One of the world’s financial centres, London is home to thousands of employers. From world famous companies to niche brands, the capital attracts people from all over the world, drawn by the major opportunities found here. Additionally, London’s world famous schools, colleges and universities are recognised around the globe as centres of excellence and places are much sought after, creating another ready market for buy to let investors. In fact, foreign students rent almost a third of homes in prime central London locations.**
London’s great transport network and a massive investment in infrastructure are other major factors in the city’s appeal for renters and landlords alike. Huge projects like Crossrail are predicted to increase residential capital values around stations in central London by 25%,†† while the completion of the London Overground orbital network and the planned Northern line extension to Nine Elms and Battersea will only enhance the capital’s appeal and values.
A compelling alternative to traditional investments
The financial events of the past few years have shaken confidence in traditional investments. The effects of the credit crunch have seen governments forced to take control of banks and interest rates fall to their lowest levels for years. Against this backdrop of uncertainty, residential investment property makes a compelling long-term alternative for people with capital assets to invest.
London already has a reputation as one of the safest places to invest in property worldwide^^ and the sheen of the games and Jubilee celebrations will only bolster the city’s appeal. With the number of buy to let mortgages being approved continuing to grow*** there’s never been a better time to buy to let in London.
*Gross rental yield figures are average values based on an independent valuation supplied in November 2012. Figures do not represent guaranteed rental return and are based on the property being continually rented. 6.5% gross yield is based on a two bedroom apartment at Renaissance with a purchase price of £263,500 and monthly rental of £1,430, therefore an annual rent of £17,160. Terms and conditions apply.
†“Rental market in London and the south-east is 'overheating'” – guardian.co.uk, 12th September 2012
^ bankofengland.co.uk – 18th December 2012
**“Rich students rent a third of prime London homes” – building.co.uk, 19th December 2012
^^“Regeneration area series - Central London” – whathouse.co.uk,18th December 2012
***“Number of buy-to-let mortgages continues to grow” – independent.co.uk/property, 8th November 2012.