London is Last Priority for Overseas Investors

6th August 2014

By Rachel Sharman

Survey participants were asked to give the different factors a score out of five for importance to them. 5 was for the most essential factor when looking for property to invest in and 1 for the least.

‘Getting it near London’ received only 1.84. Even the second to bottom: ‘Payment plan/Mortgage’, scored significantly higher at 2.75.

Any question as to why London, often thought of as the best place to invest, has dropped out of favour with foreign investors is also answered by the table. Receiving a good net rental yield was seen as the most crucial aspect of an investment. Here, London just doesn’t deliver.

Recent data from the Halifax shows house prices have seen an average of 10.2% annual rise across Britain, but it is the regional tables which reveal a more interesting picture. The standard price for property in Greater London is £330,315, it has seen a quarterly change of +3.3% and an annual change of +15.9%. This growing price is not matched in the price of rents though, which have “not risen significantly” according to Andy Noble, the senior Marketing Consultant at Find UK Property.

Rental yields in London therefore stand at around 3%, nothing in comparison to the 8% regional locations in the UK can offer. Lets Rent, an online letting agency, are the latest company to champion some of the UK’s other cities. They used data from Zoopla to determine that Manchester, Leeds, Sheffield and Cardiff are ideal places to invest in property, thanks to higher rent than expected mortgage repayments.

The data from Find UK Property showed that in second place, with a 4.42 rating, was ‘Getting a rent guarantee’. Interestingly, in third place was ‘Viewing the property personally’ which ranked above ‘Best possible price’ at 4.41 and 4.38 respectively.

It is clear that canny investors are no longer just going by the general assumptions about the market. They are interested in future yields as well as a low price. They want to see properties themselves and use their own instincts before making decisions. And finally, they are beginning to recognise the vast potential outside of London.

Adapted from: http://www.opp-connect.com/05/08/2014/investors-fall-out-of-love-with-london-property/

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London is Last Priority for Overseas Investors

06 August 2014

Survey participants were asked to give the different factors a score out of five for importance to them. 5 was for the most essential factor when looking for property to invest in and 1 for the least.

‘Getting it near London’ received only 1.84. Even the second to bottom: ‘Payment plan/Mortgage’, scored significantly higher at 2.75.

Any question as to why London, often thought of as the best place to invest, has dropped out of favour with foreign investors is also answered by the table. Receiving a good net rental yield was seen as the most crucial aspect of an investment. Here, London just doesn’t deliver.

Recent data from the Halifax shows house prices have seen an average of 10.2% annual rise across Britain, but it is the regional tables which reveal a more interesting picture. The standard price for property in Greater London is £330,315, it has seen a quarterly change of +3.3% and an annual change of +15.9%. This growing price is not matched in the price of rents though, which have “not risen significantly” according to Andy Noble, the senior Marketing Consultant at Find UK Property.

Rental yields in London therefore stand at around 3%, nothing in comparison to the 8% regional locations in the UK can offer. Lets Rent, an online letting agency, are the latest company to champion some of the UK’s other cities. They used data from Zoopla to determine that Manchester, Leeds, Sheffield and Cardiff are ideal places to invest in property, thanks to higher rent than expected mortgage repayments.

The data from Find UK Property showed that in second place, with a 4.42 rating, was ‘Getting a rent guarantee’. Interestingly, in third place was ‘Viewing the property personally’ which ranked above ‘Best possible price’ at 4.41 and 4.38 respectively.

It is clear that canny investors are no longer just going by the general assumptions about the market. They are interested in future yields as well as a low price. They want to see properties themselves and use their own instincts before making decisions. And finally, they are beginning to recognise the vast potential outside of London.

Adapted from: http://www.opp-connect.com/05/08/2014/investors-fall-out-of-love-with-london-property/

Rachel Sharman

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