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Buy-to-let boom spreads beyond the capital

Buy-to-let boom spreads beyond the capital

Category: Mortgages

Updated: 09/08/2011
First Published: 09/08/2011

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The buy-to-let boom being witnessed in London is spreading to reach other parts of the UK , new research has revealed.

According to the latest survey of UK landlords, the regions with the highest number of landlords buying property in the last 12 months were the North East (30%), the Midlands (26%) and the Rest of London (26%), which covers the area within the M25, excluding Central London.

Landlords in Central London and the Rest of London were most likely to buy further properties to let in the next 12 months (33% and 30% respectively), the Association of Residential Letting Agents (ARLA) and the Residential Landlords' Association research revealed.

Thirty per cent of landlords in the Midlands also said they would be likely to buy in the next year.

In contrast, only 18% of landlords in the South West bought rental properties in the last year, while some 10% sold - the highest number in the UK .

The research showed that landlords in the North also have bigger property portfolios, with an average 13 properties per landlord in the North East and North West.

In comparison, landlords in Central London and the South East own an average of six rental properties each.

Ian Potter, operations manager at ARLA, said traditionally London has led the way with buy-to-let, but the signs are that investors elsewhere in the country believe now is the time to buy.

"If you can arrange finance, it could be prudent to take advantage of lower property prices," he added.

"Some towns across the UK are suitable for rental investment as they have a high number of students, while others - such as the recently unveiled Local Enterprise Zones - are areas being targeted for future growth."

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