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London still capital for buy-to-let
8 May 2008 10:30
Current economic uncertainty has not hit demand for rented accommodation in London, a leading estate agent has stated, as the city continues to offer opportunities in buy-to-let.
Latest data from Paragon shows that rental incomes in Greater London were up by 21.5 per cent year-on-year to an average of £20,692 in March, with total annual returns standing at 30 per cent, compared to a UK average of 17.4 per cent.
Now Foxtons' lettings director Ed Phillips has confirmed this trend, noting that rental prices in the capital have gone up by between ten and 20 per cent on new tenancies since last summer, while even renewal prices have gone up by seven per cent on average.
He put this down to demand for homes exceeding supply, with high numbers of people still moving to London despite ongoing pessimism over the economy, many of whom might have previously bought a house but who are now waiting to gauge the market.
Mr Phillips added that Foxtons is currently seeing four to five applicants for every rented property, concluding that levels of business so far in 2008 are actually far more typical of the busier season estate agents usually experience between April and November.
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