The latest house price index, produced by the website Home, gives a broadly optimistic outlook for landlords and other buy to let investors – except, that is, in London.
Home’s director, Doug Shephard, says the capital is in short term lettings difficulties because of a glut in supply – up a jaw-dropping 30 per cent on this time last year, thanks mostly to the return of many properties from the short-let Airbnb and related sector.
“Rents are on the decline overall in Greater London – down 5.2 per cent annually – whilst rising across the rest of the regions” he says.
Across most of the rest of the UK, however, there are “soaring rents and falling supply.”
Home says that in the north and west, annualised rises are broadly around the 10 per cent mark and this, coupled with the capital gains to be had in these sales markets, there is likely to be further BTL investments.
Shephard also makes the point that with Sterling still relatively low and the stamp duty holiday now a significant draw to investors, the UK property sector has become particularly attractive for expats and non-British investors.
“Moreover, the looming stamp duty surcharge of two per cent for non-UK residents will hit in April 2021, and therefore we expect a surge of such purchases over the coming months in order to beat the deadline.”
This post has originally been featured in Letting Agent Today.