There really could not be a better time to invest in UK property, and London is a favourite spot for Buy To Let Landlords.
Property investors looking for Buy-To-Let investment opportunities may have the chance to bag a property bargain after average residential property asking price fell by more than £7,000 (GBP) last month. That’s the biggest fall in monetary terms for almost 4 years.
The average asking price for a residential property in England and Wales in November is now £232,144, down 3.1% compared with October, according to the latest survey by property website Rightmove.
The number of new property instructions on the market also fell back to levels last seen during the 2008 collapse of American investment bank Lehman Brothers, which sent the global economy into recession.
Even London could not buck the trend in dipping valuations as all regions in England and Wales were hit by monthly property price falls for the first time in over 3 years.
Although London is still the prime location for buy-to-let investors, as rental rates rose faster in the UK’s capital city than in any other UK region over the past 12 months.
Amid a flagging market, London’s annual increase in rental rates remains significantly higher than other parts of England and Wales.
Rental rates in London increased by 5.7% in October, compared to a 4.6% rise in the West Midlands, and a 4.4% rise in the South East.
Rental yields also rose in the capital, increasing to 5% last month from 4.9% in October 2010
However, the rate at which rental rates are rising has slowed, and the annual increase to 5.7% in October does represent a fall from 5.8% in the previous month. But rents have now risen for 9 months in a row and already stand at a new record high, while the average yield remained steady at 5.3%.
When these figures are combined, buy-to-let landlords with rental property in the UK’s capital city are very happy investors.
For the rest of the UK, the average property asking price in November 2011 fell by £7,528 compared with October 2011, the biggest monthly drop in financial terms since December 2007, although this is still 1.2% higher than November 2010
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