London Landlords Complete Nightmare
This is not surprising when you have extended pricing and london landlords have long sacrificed yield in expectation of superior capital growth. Cash flow is king and saves property investors. This is our focus as property investors and sometimes we are pleasantly rewarded as in Salford Manchester.
More than 700,000 foreign-born residents have left London since the start of the pandemic according to estimates from The Economic Statistics Centre of Excellence. Its population is falling for the first time in 30 years at the same time as foreign buyers have deserted the capital’s prime, central areas.
Add in the fact, the UKs tougher immigration & Brexit rules could hit hospitality and retail workers putting the brakes on any rental recovery. Even young professionals realized they can work at home and with Zoom and do not need to pay these exorbiant rents in London.
All over London there are rent reductions of up to 25 per cent have been seen with new-build flats proving the least attractive rental proposition for the capitals’ tenants who’ve suffered nearly a year working from home and now value outside space above proximity to their ghostly workplace.
London landlords are not just not profitable, they are losing alot of money.
As everyone loves borrowing, there are many highly leveraged landlords with London portfolios. Their incomes have fallen, they may be holding more empty properties than they bargained for and are earning less from the ones they can let. But they still have to service their mortgages. Toxic recipe.
Compare this to the NW and NE where there are solid stable returns. House prices still close to 2008 prices. Then add in the concept of social housing where you have long 5-10 year govt backed contracts. You collect great cash flow and just maybe …just maybe after almost 12 years there will be price appreciation.
We prefer safe and sound property investing.
Recent Comments