As property prices in London and the South-East continue to escalate, buy-to-let investors are being advised to look further afield to optimise their profits.
With the housing market in the UK still stagnating, landlords looking to extend their property portfolio could do worse than investigate the possibilities of buying homes in the North of England. Here property prices have nosedived in certain towns and the prospect of job cuts in the public sector could conceivably make selling a house even more difficult. Bargains should be readily available for those willing to take a chance.
Of course, the job situation and the difficulty, young people in particular are finding in raising a deposit for a mortgage, means that the number of people looking to rent out a home will increase. This turn in events is leading to landlords in many areas of the country, including the big cities in the north, reporting rental yields improving. The signs for the landlord willing to buy landlord insurance on a new property look better than ever, at least one industry expert believes this to be the case.
Jane Marr, a director of the Little House Company who specialise in advertising property in the North of England, said “2011 may see more activity in the north as buyers head to areas where they can afford to buy. The adage “location, location, location” will certainly ring true.”
Many landlords may well consider the feasibility of buying residential property away from their normal area of business, especially those worried about the possible impact of new Housing Benefit changes. It is doubtful the new limit of £400 per week on homes with four bedrooms will have much effect on business north of the Home Counties.