News Category: Industry NewsPublished: 15-Nov-2012
The appetite to invest in London’s booming private rented sector is growing.
According to lettings and property investment group Young, almost half of investors (46.8%) quizzed in the third quarter of this year are considering adding to their London portfolios over the next year.
In comparison, a year ago the proportion of investors planning to invest in the next 12 months stood at 38.7%.
While only 27.1% of the surveyed landlords are considering purchasing assets elsewhere in the UK, this is also up, from 19.7% in Q3 2011.
London assets clearly remain more appealing to investors than those outside the capital but the data shows that there is still a healthy appetite for PRS assets in general.
Among those not actively considering investing in London, the top reason given was due to the difficulty of acquiring financing, rather than a lack of confidence.
Virtually all (94.3%) of investors predict that the capital value of assets in London will increase over the next year. This is an increase in confidence in the London market of 16% compared to this quarter last year.
When compared to this quarter last year, the number of investors predicting a rent rise in London has risen by 10%, meaning that 84.5% of investors expect the rents in London to rise over the coming 12 months. Investors expect rents to increase by an average of 2.2%.