Landlords invest in London property

Posted 2007-12-18

According to Alliance Leicester Mortgages London will remain the most popular region for property investment in 2008, with Scotland and the North of England experiencing the strongest growth.
Professional landlords, especially in London, are more successful than buy-to-let landlords. In Central London rental yields can be up to four times higher than buy-to-let properties in South East England. Scotland and the North of England are emerging as growth regions for property investment, forecast to generate 5% and 4% rental yields respectively in 2008.
Professional landlords with large portfolios are the most financially secure. Almost 50% of landlords who owned 20 or more properties were able to save a proportion of their lettings income, 40% of these landlords relied on their portfolios as their main income. Of all the landlords surveyed by Alliance and Leicester, 71% said they are optimistic about the prospects for 2008.
Jeremy Claridge, Head of Mortgages at Alliance and Leicester said:
“It is encouraging that buy-to-let landlords indicate they are feeling about the outlook for 2008. Regardless of a tough financial year, it is clear the buy-to-let property market is still healthy for longstanding landlords, especially for those in the south-east of the country.”

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