London based investors heading north

With affordability being stretched and rental yields being squeezed, more and more London based investors are heading north

New research from property company Hamptons shows that increasing numbers of London based buy to let landlords are heading to the North West in search of higher returns.

A third of investors buying a new property last year chose properties in the North and Midlands, compared with 14% in 2015 and 4% in 2010.

​Property investment firm Mistoria Group -

The research shows that just one in four London based landlords purchased a buy to let outside the capital in 2010.

​However, over recent years, landlords in the capital have looked outside the South East for better returns and more affordable property.

We have seen a steady stream of London investors looking to acquire property in the North West since the introduction of stamp duty on second homes.

A combination of stamp duty surcharge on second homes and high price growth has pushed landlords away from the capital and the South East over the past three years.

Since the introduction of the surcharge, an investor buying in London faced an average tax bill of over £24,000, compared with a little over £5,000 outside.