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Two buy-to-let hotspots lead by Brexit

Two areas of the UK being considered as buy-to-let hotspots by property investors are the capital and the second city, but for very different reasons.

London property prices are seen as a barometer of the UK, but Brexit has changed this. Relative bargains in London can be found in areas like Camden (-2.4%) and Westminster (-3.6%) that have seen huge annual price drops. But despite the drop in values, rental asking prices have gone up 5.6% on average in the same period.

Interestingly, Birmingham is also been considered as a BTL hotspot and this is mainly due to the uncertainty around London prices and Brexit. Many businesses and professionals have looked to relocate from London, and Birmingham is considered an ideal option. The city is also home to the countries 4th largest student community, with investors looking to purchase HMOs to house them. Birmingham has seen vast redevelopment in recently, and this is a continuing trend. The HS2 link, when completed, will provide residents with a 45-minute commute to London.

All of these factors led many to believe that both house prices and rental figures are likely to increase year on year, as suggested in our quarterly Property Investors Survey that revealed that 81% of those polled believe that the UK property market will bounce-back after Brexit.

This is currently proving an interesting investment opportunity in the buy-to-let market, with investors using short-term finance to fund deals. This is data backed up by the latest Bridging Trends report for Q3. Conducted by MT Finance and other financial brokers, Bridging Trends revealed that the highest usage of all bridging loans in the quarter were utilised for property purchase.

If you are interested in investing in these buy-to-let hotspots, you can get more details on bridging finance by calling us on 0203 051 2331 or use the contact form to receive a call back.

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