18th
Dec 2015
caAnalysis ‘trumpets’ the north west of England as the best place to invest in the buy-to-let market.
The online property portal latest quarterly research highlights that Manchester, Liverpool, Cardiff, Coventry and Oldham enjoy the highest rental yields, and not far behind are Sunderland, Blackburn and Durham.
The South East and London have the highest house price growth, and the top 15 postcodes for capital gains are from London and nearby regions.
Central London ended up as only 18th for rental yield; however it achieves top spot for capital gains.
The chief executive for the company, Christian Faes, said: “If a buy-to-let bust really was just around the corner, we should be seeing more differentiated findings in these numbers.”
He continued :“Next year, we could see some weakening in London’s dominance of capital gains tables if house price growth does soften slightly as forecast, and as new buy-to-let stamp duty hikes take effect.
“Inner London margins may narrow slightly, creating opportunities for house prices in other postcode areas, particularly those in the south of England, to better compete.”
Faes also believes that the new changes to mortgage interest tax relief together with the stamp duty, will make the market become more professional.
He said: “Landlords whose tax payments under the new regime make letting their properties unsustainable, may make arrangements to leave the market.
“In turn, we will see fewer highly geared rental properties that push up prices and take stock out of the housing supply for aspiring owner-occupiers and first-time buyers drawn to densely populated urban area for work.”
He also forecasts that more and more investors in 2016 could become “cross-country landlords”, i.e. those who live in one region and rent out residences in another.
He said: “We could expect to see more landlords letting property in the North and Midland’s major urban areas for more immediate upside, without moving from their family homes in which gains can be longer to materialise.”
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