Far
Eastern Landlords Target Britain
London not sole target area for landlords
A report into the breakdown of far
eastern landlords buying property out of the traditional areas
of London and the South East has raised fears that the cost of buy
to let property may be about to rise.
The recent fall in the value of the pound has
meant that property in the UK is now substantially cheaper than
just a couple of years ago and foreign investors have become
attracted to the potential of earnings from buying property,
including new-builds, away from the traditional hotspot of London
and the South East.
This will undoubtedly have the effect of keeping
BTL property prices at current levels, at least, and hence reducing
potential earnings of landlords on their property.
Chinese investors are limited in the amount of
foreign currency they can spend in a any one year and previously
this has restricted affordability of homes in the UK. However the
decline in house prices and the relatively cheap mortgage rate has
made the option more practicable and profitable.
Although BTL mortgages only represent about a
seventh of total mortgage lending, there is a perception in the UK
that landlords are profiteering and preventing young indigenous
population from getting on the property ladder. It is unlikely that
this state of affairs will change with an ever-increasing
population forcing up demand and prices.
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