Drop in BTL investors hits London's house prices

A collapse in the number of buy to let investors in London is being blamed for falling house prices.

The Land Registry’s index for house prices reveals that London has seen its lowest annual increase for May.

Prices in the capital fell by 0.4%, with the average value of property now being £478,853.

Though with Brexit uncertainty and political turmoil weighing heavily on the capital's housing market, news that buy to let investors are shunning the opportunity of buying fresh property is helping contribute to the steep decline in agreed sales.

The Land Registry figures reveal that the number of completed house sales for London in March dropped by 28.6% compared with March last year to 6,180.

The capital's property market is 'stuttering'

The chief executive of online estate agency Housesimple, Sam Mitchell said the figures underline that the capital's property market is 'stuttering'.

He said: “The capital has, more than anywhere else, suffered with the fall in buy to let investors leaving the market because of punitive tax changes.

“The numbers of properties available for sale has increased, which is pushing down prices and presenting fresh opportunities for first-time buyers, but unsurprisingly affordability constraints remains an issue.”

The chief executive of BTL specialist Landbay, John Goodall, said: “More of the so-called Generation Rent are surrendering to the fact they will never own a home. So, as a result, the private rental sector is becoming increasingly a crucial part of our housing mix and needs support more now than ever.

"Recent initiatives by the government to professionalise the buy to let sector and improve tenancy conditions are a step in the right direction, but more investment in properties for rent will help ensure renting does not hit unsustainable levels.”

The most responsible students in Scotland revealed

Meanwhile, while students may have a well-earned reputation for working and playing hard, gaining a reputation for being good tenants is not quite so well-known.

Now, SafeDeposit. Scotland has undertaken a study which reveals that the students from the University of Abertay are the most responsible in the country as they had an average deposit deduction of £45 last year.

However, for students at the University of St Andrews, their average deduction was £262.80.

Students who are renting homes in Glasgow come out top for getting their property clean for the incoming tenant with just 28% of deductions being made by landlords agent or agents for cleaning charges.

The messiest tenants are found to be in Stirling, where 45% of deductions are for cleaning purposes.