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Despite the insecurity surrounding the global economy, the London property market is thriving. As such, the timely release of Knight Frank’s Global Cities 2016 report provides an impressive reflection of how London currently dominates the European market.
The ‘property investment volumes’ translated on the graph (and the gulf between London and the rest of Europe) is so big that it barely fits the screen. As growth across the capital evidently influences price and demand for a slice of lavish London life, with it comes increasing competition and drastically falling rates.
Following this, a surge of buy to let within the property market has become a large contributing factor, as appetite for investment properties in London and low rates for landlords is greater than ever.
Demand has had a domino effect to properties across Central London and the surrounding suburbs. In the past year alone, property prices in 45 peripheral neighbourhoods have witnessed price rises to over £500k.
Joining the list of areas with an average property price now exceeding £500k is Hammersmith, Barnet, and Kingston – which has seen prices shoot up by 30% in the last year – and Bromley, also now standing just above the half a million mark.
Despite rising prices, growth across outer areas has formed a wealth of buy to let opportunity, especially low rates for landlords. Now facing the urgency to snap up properties while interest rates are low, the number of buy to let mortgages available has passed the 1,000 mark for the first time since April 2008; growing at more than four times that of first-time buyer mortgages.
Typical variable buy to let mortgage rates currently sit at 3.6% compared to 6.84% in August 2008, and the average buy to let fixed rate mortgage has now tumbled from 7.34% to 3.8%.
Islay Robinson, CEO at Enness Private Clients, described that “recent growth in house purchase and buy-to-let, along with general improvements in economic factors across the UK, are allowing more people to enter the property market.”
He added: “there has never been a better time to take advantage of the buy to let market while rates remain low and demand unrelenting, yet the prospect of wading through thick competition can be a minefield. That is where we come in.”
At Enness, we understand this can be daunting, it’s easy to miss the best deals amidst current competition. As rumours loom that mortgage interest tax is predicted to whittle down to 20% by 2020 for investors, now is the time for you to get a great deal on your buy to let property.
Whether you’re looking to develop an existing portfolio or take your first step into the buy to let market while rates are low – we are here to help. Our expert brokers have access to every lender in the market, as well as hosting a wealth of financial knowledge to guide you through the ever-growing maze of buy to let lending.
For more information feel free to contact us for a free and personal consultation, or take a look at our latest buy to let mortgage guide.