A recent survey carried out by Find UK Property has revealed that purchasing a home close to London is no longer seen as important as it once was by overseas buyers and British expats living abroad.
Previous surveys carried out by Find UK property had shown that being near London was considered extremely important when purchasing an investment property in the UK. However, due to a combination of sharp price rises and comparatively low rental yields, the latest survey data reveals that the capital is now less attractive to investors than it once was.
A Survey conducted by the company in November 2014 on the purchasing intentions of overseas buyers, shows the relative importance of factors considered to be key when selecting a suitable investment property in the UK. Whereas prior to these surveys buying a property in London had topped the list, the four most important factors now are getting the best possible price, a good net rental yield, getting a rental guarantee and viewing the property personally.
“London property prices are now very high whereas rents in the capital have not risen significantly,” explains Andy Noble, Senior Marketing Consultant at Find UK Property. “The rental yields have thus decreased and are now about 3 per cent compared with 8 per cent in, for example, Lancashire. Additionally many experts view that prices may not grow much more in London and could even come down a little,” he added.
Due to the fact the UK property buying process and selling laws are well regulated and long term title ownership is clear cut, many residents of other countries see the UK as a ‘safe haven’ when considering long term investment in property. What’s more, according to Noble, British expats are now realising that investment in suitable property offers them better returns than other forms of investment. Therefore, rather than investing in property abroad, which can be higher risk, they are now buying UK investment property whilst continuing to work abroad.
Article published 6th January 2015