Belgravia in central London is currently the worst UK location to invest in property, according to research by home.co.uk.
The swanky area in the capital tops the website’s list of property investment black spots, after experiencing a twelve month price fall of 7.6% (on the price of an average two bedroom property). This also equates to a real yield decrease of 4.4%.
The top three is made up by Hartlepool and Poole, Dorset where prices decreased annually by 7.5% and 7.1% respectively (equating to yield falls of 1.7% and 2.5%).
Home reports that landlords' return on investment is on the slide in eleven UK locations, with negative real % yields - which occurs when the value of the property depreciates by more than the annual rent – recorded in Belgravia, Hartlepool, Poole, Salford, Soho, Halifax, North Shields, Margate, Plymouth, Westminster and Middlesbrough.
Towns and cities in the North East of England are some of the worst hit areas as property price falls have been recorded in the 12 months to September in no less than seven regional locations (Newcastle, South Shields, Gateshead, Middlesbrough, North Shields, Hartlepool and Stockton on Tees).
Home says that its figures show that despite momentum in the property market remaining, property investments have suffered in the short time in many areas.
“Price falls in the super-rich suburbs of central London have come about for very different reasons to the falls observed in the North. Prices soared in central London post- financial crisis as foreign investors sought safe haven investments. Such was the demand for this type of premium property that prices overheated, reaching a peak last year, and are now in the throes of the painful process of market correction,” Home.co.uk director Doug Shephard commented.
“By contrast, Hartlepool home prices fell hard following the financial crisis and price recovery has been elusive. In fact, price erosion continues in many such locations where supply seemingly continues to outweigh demand,” he added.
The top 20 property investment blackspots, as compiled by Home.co.uk, are as follows:
1. Belgravia
2. Hartlepool
3. Poole
4. Salford
5. Soho
6. Halifax
7. North Shields
8. Margate
9. Plymouth
10. St Helens
11. Burnley
12. Westminster
13. Stockton On Tees
14. Stalybridge
15. Middlesbrough
16. Strand
17. Gateshead
18. Rochdale
19. Newcastle upon Tyne
20. South Shields
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