London property investors are moving out of the capital - and into Herts
PUBLISHED: 14:15 16 May 2017 | UPDATED: 14:15 16 May 2017
More London property investors are buying outside the capital than ever, a new study has revealed.
According to the latest Countrywide Lettings Index, the proportion of London investors buying outside the big smoke has reached 50 per cent in 2017, the highest amount on record. This is compared to just 19 per cent in 2011.
The East of England – which includes Herts – has the highest proportion of London landlords, with 26 per cent of all investor-owned properties belonging to buyers from the capital.
In 2016, London investors snapped up more than 22,000 homes outside London, up from 3,300 in 2010 and more than the number of homes sold in Manchester and Birmingham combined last year (21,951).
It turns out that London landlords are increasingly less keen to buy in their home city - only 12 per cent of homes sold April were bought by an investor, close to a record low.
Savvy landlords are keeping their stamp duty bills down and enjoying healthier rental yields by buying in the North of England – 9 per cent of buy-to-lets in the North are currently being bought by London investors, compared to just 1 per cent in 2010.
Johnny Morris, Research Director at Countrywide, said: “In response to slower price growth and government tax hikes, London landlords are looking further than ever to find a return.
“Lower entry costs and higher yields outside of the capital are enticing investors to look further afield than they have previously.
“Rental growth remains low across Great Britain, mostly driven by London where rents have fallen for the sixth consecutive month.
“The repercussions of the stamp duty rush are still playing out in the rental market as stock levels continue to remain high. But with fewer investors buying in the capital we will likely see stock levels fall, driving future rental growth.”