London landlords are looking further than ever to find a return
The latest research from Countrywide has found that there has been an increase in London based investors purchasing buy-to-let homes outside the capital.
- The proportion of investors from the capital buying outside of London reached 50% in 2017 compared with 19% in 2011.
- Last year, London investors bought over 22,000 (22,296), homes outside the capital up from 3,311 in 2010
- The East has the highest proportion of London landlords overall with one in five homes (26%) bought by an investor sold to a London landlord
- Nearly 1 in 10 (9%) homes in the North that are bought by an investor are sold to a landlord from London, up from 1 in 100 (1%) in 2010.
- In London only 12% of homes sold in April were bought by an investor, close to a record low.
By buying outside of the capital London investors are significantly cutting their stamp duty bills. Landlords buying in London face an average £40,400 stamp duty bill compared to £6,300 for an investor buying outside of the capital. The average stamp duty bill for an investor buying in London is now 73% more compared to pre-stamp duty changes (Q1 2016), but only 8% higher for an investor outside of London.
By purchasing outside of the capital London based investors are significantly cutting their stamp duty bills. Investors purchasing in London face an average £40,400 stamp duty bill in contrasted to £6,300 for a investor purchasing outside of the capital. The normal stamp duty charge for an investor purchasing in London is currently 73% more compared with pre-stamp duty changes (Q1 2016), yet it only just 8% higher for an investor outside of London.