London 'a long-term magnet for residential property investors'

Posted by Gary Winter

Property management London services could see increasing demand as the capital continues to be an excellent place for property investment.

According to Richard Bowser, editor of the monthly magazine Property Investment News, while many other parts of the country have seen property values stagnate of late, house prices in London have continued to climb.

This means that those who invest in buy-to-let in London can enjoy not just high rents but also capital gains.

"London is and has been a long-term magnet for residential property investors, as it has produced an increase in average property values of around nine per cent per year over many years," said the property expert.

"In addition, the increasing shortage of rental property has now resulted in a 23 per cent increase in average London rents over the last two years ... and this upward trend in rents looks set to continue into 2012."

He added that a larger number of foreign investors are also being attracted by London property because it is viewed as a solid long-term safe haven and due to the decreased value of the pound.

"Many cash-rich UK investors are also buying as returns from bank deposits are so poor, so the attraction of getting a five to six per cent annual rental return with growing tenant demand, together with the potential for longer-term growth in capital values is compelling," commented Mr Bowser.

It follows a recent survey of landlords from lender CHL Mortgages, which found that there has been an increase in positive sentiment over the future of the buy-to-let industry.

Of those polled, 72 per cent said they were positive about the future of buy-to-let, up from a figure of 67 per cent in summer 2011, while 35 per cent planned to make further property acquisitions over the next 12 months.