BTL and second home investors account for 60% of London prime property
New research shows that three in five prime properties in London were purchased by either second home owners or buy-to le- investors in 2016’s first quarter.
During the first quarter of 2016, those acquiring additional homes became the second most common type of buyer in London’s prime property market. This group showed an even larger jump in market share from quarter to quarter, with 23% of all purchases made by second home owners – a huge increase from 14% in the final quarter of 2015. This boom has kept property buying agents in London extremely busy these past few months and should see more rental properties coming on to the market in the months to come.
Almost 60% Combined Market Share
Together, the second home owners and buy-to-let investors have accounted for 59% of prime London market purchases between January and March 2016. This rush to avoid the government’s extra 3% levy has produced a much higher than normal number of cash buyers, with the number rising from 34% in the previous quarter to 40% in this year’s first quarter.
Now that the additional tax levy has been introduced, the market for London prime homes should return to more orderly and less rushed transactions. Contact http://boweryldn.com/ to find out about property buying. The first quarter of this year was no ordinary sales period, and many sales were hurried through to beat the tax deadline. However, now that period is over and the extra stamp duty is legally binding, the market should rebalance. Other people, including first-time buyers, should be more involved in the market.
Prime outer London areas are highly in demand, as central areas carry a price premium. Young professionals and first-time buyers increasingly choose to buy their homes in outer London. Savvy investors are also opting to buy in these areas, as there is still more room for prices to increase.