Managed Rental Homes in Central London are Highly Sought-After
With property prices and rental values continuing to rise,
have seen a surge in the volume of landlords actively buying properties in prime Londonin order to take advantage of attractive rental returns.Fresh research by specialist buy-to-let lender Paragon Mortgages shows that propertyacquisition activity in the UK remained strong in the first quarter of 2012, during which period landlords increased their portfolio size by 1.8 properties, with prime centralLondon by far the most popular place to buy property.
John Heron, Director of Paragon Mortgages, commented: “It has been a steady and progressive start to 2012. Whilst landlords are still benefitting from attractive marketconditions, there is still a long way to go to meet the increasingly high level of tenantdemand. More investment across the private rented sector is needed during the comingyear to help to meet this demand.”The greatest supply-demand imbalance can undoubtedly be found in the heart of theEnglish capital, partly because property prices remain out of reach for many would-behomebuyers, while mortgage finance is still hard to access for some, particularly first-time buyers, pushing more people into rental accommodation instead.Unsurprisingly, 46 per cent of private rented sector investors are considering adding totheir London portfolio in the next 12 months, according to the latest Young Group Index.With rental demand and values soaring, Neil Young, chief executive of Young Group andYoung London said that investors appear to be more committed to the London marketthan ever before.“Confidence in the asset class remains strong, particularly for property in the capitalwhere investors see future tenant demand as virtually guaranteed,” he said.But with rising rents comes greater expectations from tenants.Despite the existing high level of demand for homes, landlords who are uncooperative andoffer shabby properties will generally not be tolerated by most tenants who are now beingforced to pay record high rents.It is all very well adding to a property portfolio, but a landlord needs to take on theincreased responsibility, which often proves far too time-consuming for many propertyinvestors, especially for part-time or temporary landlords.Consequently, more property professionals with properties in and around Central Londonare now turning to
firms to provide professionalorganisation, according to Adam Feather of Robert Anthony estate agency.