It is probably easier to get hold of a ticket for the London Olympics than for first time buyers to secure a mortgage these days - which is what is helping to push up rents in London.
(PRWEB UK) 26 February 2012
http://www.colordarcy.com highlighted the fact that in areas with good transport links such as Clapham, Wimbledon and some areas of South West London there has been huge increases in demand for rental accommodation.
This is without mentioning the London Olympics, which is helping to revitalise previously rundown districts in East London.
Buy-to-let investors in the capital enjoyed a 6% increase in rents over the last 12 months. This dramatic increase is making rental yields in London very attractive. Gone are the days when high prices and static rents meant poor yields. (Source: BBC)
Investors from all over the world are queuing up for property in good areas.
http://www.colordarcy.com have highlighted that the London market is booming for investors while most first time buyers are frozen out altogether by the mortgage freeze.
Loxley McKenzie Managing Director of http://www.colordarcy.com said, “It is probably easier to get hold of a ticket for the London Olympics than for first time buyers to secure a mortgage these days - which is what is helping to push up rents in London.”
Yet UK banks are still eager to lend to buy-to-let investors with good credit ratings, the volume of mortgages handed to private landlords increased by 16% to 3.8 billion in the third quarter of last year alone. (Source: Mortgage Council)
Young professionals in the city need good accommodation, they need somewhere to live so they are prepared to pay the extra for convenience and to save on travel costs. We all know how train fares for example have risen steeply in recent years.
However, even those with cars are willing to pay a premium on rent for the convenience of a parking space or a secure garage. Some landlords are charging up to £200 a week extra for larger houses with off street parking and getting away with it. (Source: Evening Standard)
London is attracting the attention of international investors, so competition for property in good areas is heating up. The mortgage market will remain squeezed for the majority of the population and house price recovery is weak.
As most property investors will say, a strong rental market will help fund a purchase, a hot rental market will pay for it. For now the London buy-to-let is still hot.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Atlanta, Brazil, Florida, Turkey and the United Kingdom.
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