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okaycuckoo

Who Buys New Homes In London And Why

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Its misleading to view the London market as a whole; the buyer demographic is very location dependent. The most expensive parts of London (except the _really_ expensive properties which are bought to be left empty) will be almost exclusively BTL. But the boroughs in zone 3 and outwards are more likely to be owner-occupier, since thats where normal people have to buy these days.

The chart on page 20 confirms this; owner-occupiers represent 85% of buyers for properties which cost under £450/square foot. BTL only becomes more prominent once you pass the £700/square foot mark, and starts declining once you go over £1500/square foot.

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Aaaahh the B2L bubble rears it ugly head again.

For sometime I have been looking for a meaningful UK rental report so that I could keep an eye on the performance of UK BTL.

Rightmove’s Rental Market Report – May 2013

I am looking for a regularly updated report like:

The DAFT rental report.

I have no idea how boomers investors can make an informed decision without accurate market information.

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Bump - Does nobody do a monthly rental index, like they do with house prices? Not even a quarterly index? Rightmove stopped theirs last year, I suspect as a result of the bedroom tax and not wanting to frighten BTL.

Again, how could you make an independent informed business decision without such a report.

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Its misleading to view the London market as a whole; the buyer demographic is very location dependent. The most expensive parts of London (except the _really_ expensive properties which are bought to be left empty) will be almost exclusively BTL. But the boroughs in zone 3 and outwards are more likely to be owner-occupier, since thats where normal people have to buy these days.

The chart on page 20 confirms this; owner-occupiers represent 85% of buyers for properties which cost under £450/square foot. BTL only becomes more prominent once you pass the £700/square foot mark, and starts declining once you go over £1500/square foot.

I wonder how many of those 'owner occupied' homes are let out in reality?

My knowledge of most areas past zone 3 throughout London is that the majority are let out. It's a massive change from 20 years ago. Co-inciding with that landlords do not upkeep their properties and neither do tenants. End result is more areas look like sums. This has happened en masse

Edited by sf-02

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And in New York - not even Manhattan, but Brooklyn:

“I’d say by the spring, maybe 70 percent of the sales we were seeing were to hedge funds, investors and others taking advantage of what was happening in Brooklyn,” said Stephanie O’Brien, a real estate broker with Douglas Elliman in Brooklyn. “Only about 30 percent were actual end users or first-time buyers.”

http://www.nytimes.com/2013/11/20/realestate/commercial/brooklyn-homes-draw-australian-investors.html?_r=0

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