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Demand for BTL in prime central London showing signs of ‘resurgence’

Demand for BTL in prime central London showing signs of ‘resurgence’
11 June 2019

By UKinsuranceNET In News

LandlordToday reports that in prime central London the demand for buy-to-let (BTL) property has increased in recent months – with the trend looking set to continue throughout 2019 as rental yields improve.

The latest data shows that rental yields in prime central London are currently at a six-year high, which may be an attractive proposition for buy-to-let landlords.

Citing data from Black Brick buying agency and Knight Frank’s Prime London Lettings Index (December 2018), the figures show that:

  • in December, the average rental yield achieved in prime central London was 3.35% – the highest level seen since April 2012;
  • letting activity across prime London markets has remained firm with the number of new tenancies in November 2018 increasing by 12.3% in comparison to the corresponding period in 2017;
  • average rental values in prime central London increased by an average of 1.1% in December in response to falling levels of supply, prompted by landlords seeking to sell their properties in response to recent tax reforms.

There is a suggestion that rents will rise further this year, with number of new prospective tenants registering in prime central London increasing since the start of the year, while supply falls.

A Black Brick spokesperson said: “We are seeing something of a resurgence in buy-to-let enquiries compared with a year ago, and we are sourcing deals offering yields between 4-5% … With rents set to rise perhaps 15% over next five years, this part of the market should see a bounce”.

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