As London landlords face ever-increasing pressure from the government and many financial pressures, many are looking to invest in rental property outside of the capital.
There are a number of reasons why this makes sense as an investment strategy. Firstly, property outside of London represents much better value for money. In many cases, you will be able to get more space for your money, meaning that you can offer tenants a more attractive proposition.
Secondly, rising rents across the country mean that landlords can achieve a greater return on their investment by investing outside of London. In cities like Peterborough, landlords are seeing rents increase at a rapid pace, meaning that they can achieve healthy yields on their properties.
Finally, there is less competition from other landlords when you invest outside of London. This means that you are more likely to be able to find tenants quickly and achieve a good rental return.
So, if you are a London landlord looking to invest in the buy-to-let market, then investing outside of the capital makes a lot of sense. You will be able to get more for your money and achieve higher rental returns.
Average asking rents rising outside of the capital
Average asking rents outside London have hit another new record of £1,126 per calendar month according to Rightmove.
Rightmove have highlighted the increase in average asking rents across the country, and outside of London, a new record has been set at £1,126 per calendar month. This figure, for the second quarter of 2022 represents a 3.5% increase on the opening quarter of the year. However, if you compare it to the figure from summer of 2021, there is an 11.8% increase in average asking rents out of the capital.
Rightmove’s Director of Property Science Tim Bannister said; “The story of the rental market continues to be one of high tenant demand but not enough available homes to meet that demand. Last year we saw exceptional numbers of tenants looking to move and this year we have seen no let-up in this trend. Whilst stock levels are beginning to improve, with June seeing the highest number of new rental listings coming to market so far this year, the wide gap that has been created between supply and demand over the last two years will take time to narrow. Until then, this imbalance will continue to support asking rent growth.”
Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
The team at Just Lets Peterborough continue to operate remotely to ensure we can continue to serve you and your tenants throughout this covid period and beyond. Please contact us through our usual channels – email us at email@example.com or call us today on 01733 346255.