Target 'prime addresses' when making UK property investment
Investors looking for buy-to-let properties in London have been advised to target the capital’s most exclusive areas.
According to Naomi Heaton, chief executive of property investment fund London Central Portfolio, since the credit crunch, there has been a “decoupling” property market, with residences in prime London areas increasing in value much faster than those elsewhere.
"Investors of any age buying property for rental investment are advised to target the most prime addresses that their budget affords. The old adage of location, location, location has never been more appropriate."
The investment expert added that the core tenant demographic for rental investment properties is the single professional or the professional couple.
In central London, they are likely to be independently wealthy and upwardly mobile in their careers.
"As such, properties will need to be immaculately presented, close to the amenities that London Central has to offer and with excellent transport links to the tenants' place of work, be that the City or Canary Wharf," said Ms Heaton.
Meanwhile, figures from Lloyds TSB released this week revealed that the number of million pound property sales in 2010 rose at the fastest rate for four years, increasing 54 per cent compared to 2009.
However, the bank said that 83 per cent of all £1 million transactions took place in London or the South East.
"A small number of areas in London still account for the lion's share of all £1 million sales, with housing market activity in such locations continuing to benefit from strong demand from wealthy international buyers and limited supply," said Lloyds TSB housing economist Suren Thiru.
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