More Investors Buying Property In Central London

  • Added:
    Jun 07, 2013
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More Investors Buying Property In Central London Photo by James Forbes

With a growing number of investors taking advantage of favourable market conditions by buying property in central London with a view to letting them out, demand for various property services, such as property management and referencing facilities, designed to minimise the risks associated with investing in property, are likely to rise.

With a lot of investors now disillusioned with pensions, many more people are turning to buy-to-let property as a means of supplementing their income, with the central London property market particularly buoyant.

Aside from rising rental values, an overwhelming majority of Londoners believe that London property prices will continue to increase in value for the foreseeable future, according to a recent YouGov poll.

Some 77 per cent of Londoners surveyed said that the average home price in the capital will appreciate in the next 12 months, and an even greater proportion of Londoners (83 per cent) think residential property prices in the capital will increase over the next five years.

Commenting on the results of the poll, YouGov Director of Political and Social Research Joe Twyman said: “It doesn’t matter if you’re talking about the next year or the next five years, overwhelmingly Londoners believe that house prices will continue to rise in the capital, and that their own house will also increase in value.”

There is growing evidence to suggest that more people are becoming reliant on the income from their properties to make a living.

The recent rise in rents means that more landlords are benefitting from higher rental and there is unlikely to be any diminishment in them any time soon; an attractive proposition for investors.

“Rising rents are offering an increasingly attractive return for those who have the capital to invest in property,” said Ian Fraser, managing director of HomeLet.

Although property in central London is a highly attractive investment proposition, it is essential that investors in the market do their homework, seek expert advice and ultimately reference their tenants properly, and that is where Central London property servicescome into play.

Tenant referencing, for instance, is an important tool for minimising a landlord’s exposure to potential financial and physical damage. It is not just the ability of a tenant to pay their rent on time, but also how they will treat your property that’s important.

Brandon Hibben, Head of Property Management at the Guild of Professional Estate Agents, commented: “Referencing from a reputable company is the most important tool in an agent’s assessment of a tenant. Not only does it help to present the best tenants to clients, it also minimises future issues that could potentially have financial and legal consequences.”

Marylebone estate agentsNapier Watt, like many estate agents, use the services of a credit rating agency who check all aspects of a prospective tenant and then issue a credit rating.

“If it is an A rating then the credit rating agency will offer rent insurance cover, i.e. if the tenant defaults the insurance cover will pay the rent until the tenant vacates the property,” a company spokesperson said. “At Napier Watt, we generally like to ensure that all our landlords and their property investment are protected.”

Ultimately, referencing services from a reputable firm is one of the most important tools available to landlords. Not only does it help to find the very best tenants, but it also minimises future issues that could potentially have financial and legal consequences.

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James Forbes says that with more Marylebone estate agents reporting that a growing number of investors are buying property in central London, demand for central London property services is set to increase.

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