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.
