According to new figures released this week many people looking to invest in property think London is the safest place to grab a new property.
Given all the rumours swirling around about double dip recessions and at the very least a second drop in house prices, people are cautious and London seems to be the answer. It is said to present the best opportunity for impressive yields even in these uncertain economic times.
The market in London for BTL hit its lowest point in June 2009. Since then rent prices have risen, on average a fantastic 16%. High end luxury accommodation in fashionable areas has fared especially well.
The particularly strong housing market in London is also likely to send tracker rate mortgages up. This will have two side effects. London resident are likely to continue to rent, perhaps for longer than they had planned. At the same time new residential landlords will struggle to get finance slowing down the growth of the private rented sector.
Both of these factors promise a continuation of demand outstripping supply and healthy rental prices remaining in place.
