The East Midland property market benefits from:
- Fewer international investors seeking a safe haven (who have driven up prices disproportionately in London)
- Fewer buy to let investors relative to the housing stock
- Greater affordability; most importantly
- Less affected by international factors; foreign exchange prices, international economics all affect London more than the regions
- More strongly related to the UK economy; more solid foundations.
- Wage growth and decreasing unemployment:
- Government stimulus: help to buy scheme set to continue to 2020
May be the growth in house prices in the East Midlands has been slower than in London but it is more sustainable growth which is a good thing. This is why we and other respected commentators expect price rises of around 20% by 2020.
Combine that with an annual recurring rental yield of 7% gross or 5% net and top it up with some expected rental growth of 2-3% per year and you can see why we recommend ‘buy to let’ in the East Midlands.
Do contact us in one of our offices in Kettering, Northamptonshire OR Oakham, Rutland OR Stamford, Lincolnshire to discuss investment opportunities in these areas and the wider area.