Are you among the London-based investors increasingly buying buy-to-let property elsewhere?

It’s not a secret that a range of factors is leading many owners of private rented property in London to look at other parts of the UK as places to expand their portfolios – and we’ve now seen more statistics indicating that the widely-reported trend is a very real one.

London rents reach record highs – but landlords are also tempted by other areas

According to the monthly lettings index of a leading estate agent chain, almost three fifths – 59% – of landlords based in the British capital purchased their buy-to-let property outside London during the last 12 months.

This marks a significant change over the last decade, with only a quarter (25%) of London landlords having bought their buy-to-let property away from the capital in 2010, compared to the remaining three quarters (75%) that opted to invest in London.

One should not presume from such figures, however, that London is exactly bereft of buy-to-let investment opportunities in 2019. Indeed, London rents recovered from a sluggish 2018 to achieve a record high in March, with the average cost of a new let in the capital hitting £1,737 a month.

So, what is causing investors in the capital to look to other parts of the UK?

One factor that has been suggested as a driver of this trend is the stamp duty surcharge that was introduced for second homeowners in April 2016, and which has prompted landlords interested in adding to their portfolio to seek property further afield than was previously the case.

Areas outside London – such as Birmingham and Manchester – are proving ever-more attractive to landlords that are eager to lower their stamp duty bills while bolstering their yields.

It means that since 2015, there has been a 17% fall in the proportion of London-based investors purchasing buy-to-let property in their home region. This should be particularly unsurprising given that while the typical stamp duty bill for a landlord buying in London during the last 12 months was £24,600, it was just £5,330 for an investor acquiring property in other parts of the country.

Whatever your plans for the year ahead, make it easier with Yellow Oak

With the 34% of London-based investors who purchased buy-to-let properties in the North and the Midlands over the last 12 months representing a significant rise on the 14% seen in 2015 and the 4% recorded for 2010, it’s fair to say that such cities as Manchester and Birmingham are seeing a deserved heightening in attention from the capital’s landlords.

Indeed, we have positioned ourselves to better serve such landlords here at Yellow Oak Inventories LTD, by moving to establish a presence in the aforementioned cities for May 2019.

So, whether you are in need of a let property review in Birmingham, an inventory in Manchester or check in and check out services in London, we’re the only company to which you will need to turn for such expertise in the months and years ahead!