- Readers Rating
- No Rating Yet!
- Your Rating
The East and West Midlands are seeing growth in buy to let investment property purchases.
New research from Paragon, which surveyed a total of 680 landlords, found that buy to let mortgages for property purchases have fallen by approximately 40 per cent overall since 2015.
However, landlords in the Midlands are challenging this trend. Strong economic growth in the region fueled by Birmingham’s successful regeneration and a plethora of universities have made the region particularly desirable for investment.
Further stimulation came from several financial service firms relocating their head office and operational functions outside of London to Birmingham. HSBC and Deutsche Bank recently made the move, while further activity is expected in the city ahead of the 2022 Commonwealth Games.
Tenant demand was also seen to be increasing in the region. 42 per cent of landlords in the East Midlands had seen a surge in demand, while 33 per cent of landlords in the West Midlands noted the same trend. These figures are particularly high when considered in comparison to the 24 per cent of all landlords who noted rising demand.
Rental in the region were also strong. Landlords in the East Midlands reported average yields of 6.7 per cent while those in the West Midlands saw yields of 6.2 per cent. In comparison, the research also discovered that landlords operating in Central London were least likely to be buying property. In fact, a net 16 per cent of those in the capital said that they had sold some property in the first quarter.
Managing director of mortgages at Paragon, John Heron, said: ‘These findings highlight a big regional difference in landlord experience and buying habits. Some Central London landlords appear to be scaling back a little while landlords in the Midlands continue to invest on the back of a positive outlook.’