Blackpool is attracting London landlords seeking high rental yields and affordable property prices, as buy-to-let investment in the South East declines.
Landlords attracted by the potential of high profits are leaving London in large numbers and moving to Blackpool . The seaside resort is experiencing a surge in rental yields, reaching double digits, nearly twice what investors can expect in the capital. Data from Hamptons estate agency reveals a significant rise in the proportion of homes in Blackpool bought by London ers, increasing from 4% in 2019 to 9% this year.
Most of these new buyers are purchasing investment properties, aiming to capitalize on both high rental income and affordable property prices. Conversely, buy-to-let investment in the South East has steadily declined over the past decade due to skyrocketing house prices. By 2014, almost half of all buy-to-let purchases in the UK - 46% - were in London and the South East, according to the Express. This figure has now dropped to just 32%, while the share of landlord purchases in regions including the North West, North East, and Yorkshire and Humber has increased by 13 points. Blackpool offers a distinct advantage for landlords regarding stamp duty, where they will pay an average of £6,816. In London, the average payment is a staggering £46,633, even before additional surcharges for second homes and buy-to-let properties are applied, according to buy-to-let bank Paragon. This substantial difference appears to be encouraging more London investors toward the Lancashire town. Stephen Bagdoans, a managing agent at Blackpool-based Kenricks Commercial, explained to the Telegraph the economic forces influencing the area. He stated: 'It's simple supply and demand. Yields are going up because the Government has been cracking down on landlords. If you're being hit by a stick, you move out of the way.' Additionally, the area is attracting new investment, with several government offices relocating there, as public sector workers seek higher-end properties. Mr Bagdoans added: 'The council ensures properties meet standards and are decent.'
INVESTMENT PROPERTY BLACKPOOL LONDON RENTAL YIELD
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