LONDON, December 17, 2010 /PRNewswire/ -- - UK Property Market Recovering in London - Attractive Buy to Let Rental Yields - Property Search and Mortgage Specialists Both Cautiously Optimistic
Data released by the Association of Residential Letting Agents covering the three months to September 2010 shows average rental returns for houses has risen from 4.8% to 5.0% and those for flats are up from 5.0% to 5.1%. In addition, ARLA members reported increased achievable rent levels over the last six months on all types of rented property.
According to the ARLA data, there has been a further strengthening of demand in the rented residential property sector and a reduction in void periods which have dropped from an average of 3.2 weeks (22 days) to 2.9 weeks (20 days), the lowest it has been since this question was first asked eight years ago.
At the same time, data released by the UK Land Registry shows the average monthly house price change has slipped to minus 0.8%, giving an annual price growth figure of 3.4% for the UK on a rolling 12 month basis. Greater London has continued to buck this trend with a price rise of 0.3% during the month, producing an annual growth figure of 7.8%.
Commenting on the figures, Erica Evans of expatriate property search agents Expatfindaproperty.com (http://www.expatfindaproperty.com/) said, "We are now starting to see rental yields rise and property prices fall in some areas. This weakening of prices is of interest to expatriate buyers, as it makes a buy to let rental property more affordable, yet at the same time rental yields can continue to drift higher. We are now seeing enquiries from clients who wish to use property as a cornerstone of an international pension or retirement plan, as buyers look at the long term again. With rental yields still above mortgage costs for good quality properties, international pension planning based on property can be attractive."
According to the Council of Mortgage Lenders, which issues data on behalf of Building Societies, lending for both house purchase and remortgaging fell back slightly in October. There were 46,000 loans for house purchase worth GBP6.7 billion, down 4% in number and 6% by value from September. The total was 12% lower by value than in October 2009, but lending numbers in the final quarter of 2009 were boosted as buyers brought forward transactions to take advantage of the stamp duty holiday.
Reviewing the data, Tim Harvey, managing director of UK regulated discount brokers Offshoreonline.org (http://www.offshoreonline.org/) mortgage specialists for the expatriate market agreed lending conditions remain tough for onshore buyers who are used to 100% mortgages, but for expatriates who have a 30% deposit, loans of up to 70% of a property's value are readily available. Harvey adds, "Expatriates looking to buy a main home or buy to let can secure interest rates of 3.49%, a figure which drops considerably if a larger deposit is offered. As a result, we have seen a pick up in enquiries from expatriates in Dubai and the Middle East as well as from those based in Hong Kong, where salaries tend to be high, so deposits are less of an issue."
Useful contacts: Offshore mortgage broker visit http://www.offshoreonline.org UK property search services, visit http://www.expatfindaproperty.com UK house prices, visit http://www.landreg.gov.uk/houseprices Arla: http://www.arla.co.uk/buytolet/latestreports.aspx Note to Editors
Offshoreonline.ORG is a UK regulated specialist expatriate broker offering advice on UK, French, Italian, Spanish and Turkish mortgages, life insurance, pensions and savings for UK expatriates anywhere in the world. Offshoreonline.org is the website of HR Independent Financial Services Ltd, who are based in Devon.
Offshoreonline .org pioneered the concept of the discount broker in the expatriate market when it started offering no fee deals on many popular offshore savings funds in 1998.
Overall, the company aims to bring high quality UK regulated advice and service to UK expatriates worldwide in the areas of pensions, mortgages and life cover. The company is UK regulated by the FSA for investment business, giving offshore customers the reassurance that they are dealing with a reputable organisation.
Expatfindaproperty.com is a specialist relocation and buy to let search agency aimed at non UK residents who wish to invest in the UK, in particular in London. The agency covers other parts of the UK via a network of partnership agreements.
For further press information: Jenny Duffy +44(0)20-8333-9125 Email: [email protected]