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Huge External Interest in London and the South East

“I was desperate to start 2012 off with a bang – and secure a deal in the South East.  Over 30% of our enquiries are for properties in the South East of England – and it is by far the most competitive market in the UK.  Getting significant discounts on properties that fit for buy to let is pretty much unheard of in the South East of England – and we have been working hard in the background building up our list of sourcers.  We now have 2 deals – freehold houses in Kent giving up to 7% yields, and an excellent discount, an incredible 36% below 2008 values – but sadly we only have five – and some tenanted apartments in Woolwich, SE18 – with strong discounts, and excellent cashflow!”

This is the perfect opportunity to add South East properties to your portfolio.

The London, and SE property market continue to be hot – with many yields being pushed down to under 5% - so to secure properties with 6.5-7.5% rental yields is getting very tough to achieve.

Huge External Interest in London and the South East

As you will no doubt be aware, it is not just UK investors that are looking to buy in London and the South East currently.   Investors from all over the world are attracted to the UK, and London, with currencies strengthening against the £, and giving external investors even better value. There is also a lot of attraction to the security investors feel when investing in London.

Naomi Heaton, chief executive of London Central Portfolio, said: "Average prices in prime London central now stand over 15 per cent above the pre-credit crunch peak.

"It is clear that investors still recognise the value of London's premier real estate as a safe haven investment as well as a hedge against inflation and instability elsewhere in the world.

House prices in the capital rose in December, even as those elsewhere in the U.K. stayed flat or fell, says the Royal Institution of Chartered Surveyors. Prices in prime central London are now around 16% higher than their September 2007 peak. Some forecasters predict further 25% rises by 2016, as foreign investors continue to seek safe havens for their cash.

London house prices are today forecast to rise by almost a fifth over the next five years, outstripping every other region of the country.

The capital's property market is expected to remain the most resilient in Britain with the biggest rises seen in the most sought after central London neighbourhoods where they could go up by as much as 23 per cent, according to Savills.

The forecasts, from agents Savills, mean that a £500,000 London family house could be worth close to £600,000 by 2016.

Prices are expected to rise much more slowly or even fall outside London, a trend that is deterring thousands of families from making the move to the countryside.

Yolande Barnes, director of Savills residential research, said: "Despite the widening gap between London and the country, Londoners seem increasingly reluctant to move out and there has been a 24 per cent drop in such relocation activity.”

For the figures to work for us for buy to let mortgages we are aiming for:

  • Prices between £150-250,000
  • Rental yields between 6.5-7.5%
  • Discounts between 15-25%

We have full investment packs for both deals with historic prices, comparables and actual rentals currently being achieved.

Key points on apartments:

  • Sold in 2004 for between £190-210,000 each – and we have secured these at incredible £149,400 each!
  • Two bed apartments, with allocated parking space
  • Accessible by the DLR line

Key points on houses:

  • Freehold houses
  • Two previously sold for £275,000
  • Currently on the market for £220,000
  • Secured for just 180,000!
  • High specification finish
  • Strong rental returns available

Call us on 0115 9853963 and speak to one of our Portfolio Development Managers by registering your interest here for a full investment pack.

TAGS: UK Property, South East Property, London Property, Buy To Let


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