Lucy Says:
"The reported buy to let boom is positive news for the UK property market, however, there is a danger of market saturation, and we would urge investors to purchase with caution.
In prime central London, it is a well known fact that yields are low as rents have not risen at the rate of the capital values. In fact, rents overall have fallen on average by circa 2.5% since the beginning of the year as currently supply outweighs demand.
It's the poor quality properties that are sitting on the market, and this is obscuring the price and void period statistics. It is absolutely essential that properties are priced correctly and presented in their best possible condition as newly refurbished flats and houses that are of a high standard are still achieving record breaking rents.
Bearing in mind rental yields and supply and demand, prime central London's buy to let investors should take a long term view, particularly focusing on capital growth. We would also advise buying a modern, newly refurbished property in order to ensure it lets well.
Another important factor when purchasing is to ensure that the rent being quoted by the selling agent is actually achievable - buyers should check with an independent source."
