18 Sep

Londoners 'investing outside capital'

Londoners 'investing outside capital'

Londoners are frequently getting on the property ladder in an unusual fashion by buying to let outside the capital, new research has found.

Research for the Property Investor Show, to be held in London next week, have found that a number of buyers are purchasing in cheaper areas in other parts of the country and making a living from the rent, while continuing to be tenants in the metropolis.

It quotes the case of buyer Luke O' Neill, who spent £155,000 on a two-bed property in the Suffolk town of Bury St Edmunds.

He said: "The rental yield for the property is five per cent and the monthly rent goes towards the mortgage on the house and it also leaves me with a little extra."

This extra will go towards a deposit so he can eventually buy his "dream" house in London, Mr O'Neill added.

Manager of the Property Investor Show Nick Clark commented that this is a good way for people to get on the ladder before prices start to rise again.

Figures produced by the Department for Communities and Local Government this week have revealed that the average London property in July this year cost £343,182, compared with the overall English average of £224,207.

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