Analysis by specialist property lending specialists, Octane Capital, reveals that whereas secondary property purchases account for simply 23% of all house purchases in England, this climbs to 29% in London, with this proportion hitting greater than 50% in some boroughs.
England’s housing market has been on hearth for the final two years. Demand is excessive so costs are excessive and one cause for that is individuals shopping for extra properties. In reality, 10% of the inhabitants are thought to personal a further property, with the overwhelming majority investing in a buy-to-let rental property.
Analysing information on extra property purchases made within the final monetary yr, Octane Capital has discovered that there have been 230,800 extra property purchases which equates to 23% of all housing market transactions.
Regionally, these locations the place extra houses account for an above common portion of the market embrace Yorkshire & Humber (24%), the North West (26%), and North East (26%), however nowhere do they account for a extra substantial slice of the market than in London, the place 35,100 extra house purchases equate to 29% of all housing market transactions.
This makes London the second house capital of the nation and right here’s a breakdown of extra house purchases on a borough-by-borough degree.
Probably the most energetic extra house market in London is Kensington & Chelsea the place 1,200 extra house purchases equate to 52% of all market exercise within the borough.
Westminster isn’t far behind, with extra houses accounting for 48% of all transactions, adopted by Camden (38%), Harrow (38%), and Brent (37%).
The boroughs with the bottom proportion of extra houses are Waltham Forest, Lewisham, and Bexley, in all of which they account for 21% of market exercise.
CEO of Octane Capital, Jonathan Samuels, commented: “Some might frown upon second house homeowners, however the reality of the matter is that the overwhelming majority are buy-to-let landlords, not high-end householders proscribing inventory availability by buying not often used vacation retreats.
So whereas nearly 1 / 4 of all transactions could also be attributed to second houses, these purchases are serving a significant function, offering a lot wanted rental market inventory to a nation that’s turning into more and more extra reliant on long-term renting as a method of dwelling.
In fact, there are exceptions to the rule and London’s prime market is actually a type of exceptions. Throughout the likes of Kensington and Chelsea and Westminster the next propensity for second house possession is undoubtedly being pushed by rich householders growing their very own personal portfolio, reasonably than investing in buy-to-let alternatives.”