The South East nearly caught London for buy-to-let purchase market share during 2017. That's according to new annual data from Commercial Trust Limited.
Last year saw a 3.4% growth in the South East, a report by the specialist buy-to-let broker found. This helped to narrow the market share gap with London to just 0.3%, partly caused by a reduction in buy-to-let activity in the capital.
The report also found that the North West performed particularly well in 2017, with a second successive year of growth, up 3.1% from 2016. The North East, meanwhile, was up 0.9%.
These figures upheld recent trends which have seen both regions grow their market share year-on-year since 2015, while Yorkshire and Humber was another region which witnessed an increase in its market share for new purchases.
“The traditional dominance of London as a hub for buy-to-let investment has undoubtedly shifted somewhat during 2017, with more choosing to invest in areas where property prices are cheaper and rental yields higher in light of changes in the buy to let marketplace,” Andrew Turner, chief executive of Commercial Trust Limited, said.
“There is a growing trend for people looking to rent outside central London, to places with good transport links, but where rental prices are lower. This is creating reinvigorated demand in the South East from commuters, while for investors, property prices here are slightly less prohibitive than in London.”
Turner added: “The price of property and therefore stamp duty in London remains the highest in the country, which is another factor under consideration with investors.”
He said that, as the nucleus for UK business and the country’s capital, London will always draw huge numbers to work and live there. “However, higher upfront costs and lower anticipated capital growth, ahead of the Brexit outcome, are likely to be contributory to investor reticence in the capital,” he concluded.