16 Sep

Investor focus on London rentals

Investor focus on London rentals

More of the people now heading to estate agents in London to buy property are doing so with the intention of putting it into the private rented sector, a new study has discovered.

Figures released by Savills have shown that one in every eight properties purchased in the capital is purchased to be let to tenants. However, these landlords are thinking about more than just the yields they bring in while doing so.

Due to the high initial price of buying, yields in London are often not as attractive as in other areas of the country - they have dropped from more than six per cent in 2005 to 3.1 per cent in 2013 - but the study said there are other factors that make the private rented sector in the capital a good prospect.

For some, the safe haven offered by the constant and sustained level of demand in the capital is something attractive, Savills said, with the promise of a steady income month after month still bringing more investors to the market.Others see the underlying value of their assets as being the biggest reason for investment. A great number buy property in London because it is a safe storage of their wealth with a tangible asset, while the chance of it growing and giving them a return in the future is very high.ADNFCR-1222-ID-801637975-ADNFCR

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