London's Landlords Are Increasingly Buying Outside Of The Capital
London's landlords are increasingly buying outside of the capital
London's landlords are increasingly buying investment property outside of the capital, one lettings index has revealed.
The findings from real estate firm Hamptons International found that in the last 12 months, 59% of landlords based in London had bought a buy to let property outside of the capital.
Traditionally, landlords in London bought their investment properties close to where they lived.
In 2010, 25% of these landlords bought a buy to let property outside of London and, according to the data, that figure has now risen to 59%.
The head of research at Hamptons, Aneisha Beveridge, said: "April is the three-year anniversary of the introduction of stamp duty surcharge for second homeowners.
‘Landlords have adapted their strategy’
"Following this tax hike, landlords have adapted their strategy in finding a new way to make returns.
"Higher yields and lower entry costs outside of London are enticing investors to look further afield than they did previously."
London rents are now £1,737 per month on average - that's 2.3 times higher than the average rent found outside of London.
Hamptons also points out that every region, other than Scotland, saw rents rise.
Since 2015, the proportion of investors who are London-based purchasing a buy to let property in the capital fell 17%.
A landlord who is buying a BTL property in London faces an average stamp duty bill of £24,600 - compared with a stamp duty bill of £5,330 if they buy outside of the capital.
However, for those London-based landlords buying BTL properties, the south-east remains the most popular destination when buying outside the capital.
In this region, Dartford is the most popular location with 60% of all Dartford's buy to lets over the past year being made by landlords who are living in London.
What tenants are willing to compromise on
Meanwhile, a survey from Zoopla has revealed what tenants are willing to compromise on when looking for a home to rent.
According to their findings, 61% of tenants say they are not set on a particular area but they are not flexible when it comes to homes with nearby amenities such as bars, shops and entertainment.
More than 1,700 tenants were surveyed across the UK on what they would be willing to compromise on when renting their next home.
Following amenities, the issues least likely for a tenant to compromise on is the number of bedrooms and the size of the rental property.
A Zoopla spokeswoman said: "The research paints an interesting picture of priorities for tenants and it may come as a surprise that they are more likely to prioritise accessing local amenities over the rent price and the number of bedrooms."