According to information for the fourth quarter of 2016 held by the National Landlords Association (NLA), it would appear that some tenants who have been renting homes in the centre of London are looking to move out into the likes of the South East of England where no doubt the same sort of property can be rented for less money.
Apparently, landlords have been reporting that there has been a fall in the interest shown by tenants in Q4 of 2016 in renting properties in central London when comparing the same quarter of 2015. There has been a drop of 28% – from 45% to 17% that we are sure that you will agree is a significant figure.
In the South East, 40% of landlords have reported an increase in interest from tenants in renting a property in the final quarter of last year.
It is interesting that only 5% of landlords that are renting out properties in London intend to buy additional investment properties to let out over the next three months. A year ago, this figure was 15%. This is very different to Yorkshire where 16% of landlords are planning to buy more properties to rent out in the next three months whereas, a year ago, that figure was only 10%.
So, if you are a landlord operating in and around London, you might wish to bear the above information in mind should you be considering buying one or more properties to rent out? Obviously, the location of an investment property has always been important but, in view of what has been reported above, such a factor may have even more relevance in your decision making process. After all, you do not wish to find yourself in a situation where you are struggling to rent out an investment property as this may present you with some financial implications i.e. you may be unable to meet the repayments on your buy-to-let mortgage for a period of time and this could effect your credit rating in an adverse way.