Before a buy to let surcharge of 3% was introduced this April 2016, potential landlords rushed to find the best properties in London to fill their books. Now that several months have passed, many more are now assessing their options in the city as finding the right investment area has become the most prevalent criteria in the midst of economic change.
Area improvements & Development
There is a golden rule in London that you can’t ignore: development has a dramatic effect on property prices. There’s no denying London’s popularity as a global tourist destination; the city of London was named the best city destination by TripAdvisor this March, and was voted the most desirable city in the world for workers in 2014. A ‘promising’ location in this instance does not mean the cheapest or the most expensive area but a place where people work, take their children to school and choose to stay during the weekend.
What to look out for :
- The pros & cons your chosen buy to let neighborhood?
- Is it positioned along a commuter belt?
- Is it in a good catchment area for schools?
- Is the area well connected?
- Are there transport upgrades nearby?
- How has the market fared aftershocks to the economy?
- The more knowledge you have, the better the chance of purchasing a worthwhile investment.
- High visibility advertising
If an area is popular, chances are that it is either in the midst of redevelopment or it has been a hotspot for quite some time. A dense population is one measure of a healthy buy to let market, the other is an available high street advertising platform with high footfall & visibility to promote your property. As a landlord, you need to consider each stage of the process, from buying the property to filling it over the long term. Property outlets that are ideally located between prominent transport stations in London, which experience continuous high footfall throughout the year with high visibility, are best placed to advertise local privately let properties so be selective when choosing your property agent.
The student sector remains strong and is ready to accommodate growth since the cap on the number of undergraduates entering university has been lifted. English-speaking countries still have the edge in the student housing sector, but while developers increase their efforts to provide luxury student accommodation – particularly within London – to chase the best yields, existing housing stock waits in the wings to provide shelter for students leaving university-funded housing options. Tap into this market by choosing an area with an existing student population, a low crime rate, plenty of bars and pubs, and of course education institutions around the corner.