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Uk’S Property Notspots Are Named

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Seen some of these Home.co.uk charts down the years - 'Real yield' - but can never find a regular link for them at their website.

Always think to them when people claim 'look at the juicy yields in the North for BTL.' Some of them have been quite startling, if their data is accurate.

For richer or for poorer: UK’s property notspots are named

October 30, 2014

Search engine Home has revealed property investment black spots where house prices are falling.

In some of the worst performing areas, prices are falling by more than 7% per year.

Landlords’ return on investment is also looking iffy where the value of the property depreciates by more than the annual rent.



Expanded article with Home chief guy:


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If they can include HPI in the yield on the way up, then the same applies on the way down! Frankly as an investor you would privately count the in/de/flation in your yeild, even if you didn;t count it for the tax man.

This is hwy crashes happen, who is going to buy a property fetching a negative yield? The BTL brigade like to believe that reduced prices give them an opportunity to buy, but in reality they don;t as like every one else they believe that they can buy the same asset cheaper next year.


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Belgravia twinned with Hartlepool.

Indeed, an interesting mix of Prime London and various dumps, with scarcely anything between. Maybe only Newcastle that combines affordable with reputedly-livable!

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This was their position as of March 2013, but I guess some of these areas seen HP reflation(?) since then because of QE/HTB/low rate renewed speculation etc. Margate is in their latest chart, and in this early 2013 chart, and I heard tale prices had got more expensive since then. Belfast up.

These pension-BTL-property-property investor types might see a lot more real yield slide if money tightens up from here, if global QE really eases off. Even BTL financing said to be tightening up, but still quite a bit of capital chasing yield and safety of bricks and mortar.

BTL Disaster Zones: Property Investors Beware
5 March 2013

New research from Home.co.uk reveals that investment in the wrong location can lead to low or even negative returns.

Investing in property can appear to be a very attractive option. Given the current economic backdrop, there are few investment sectors that offer both 'safe haven' status and inflation beating yields. However, new research from the property website Home.co.uk shows that the old adage 'location, location, location' could not be more relevant when sinking capital into bricks and mortar. Looking beyond gross rental yields, their analysts have calculated real yield for the most popular rental locations across the UK.

The latest study from Home.co.uk assesses the impact of changing capital values to produce a more realistic view of rental yields and the real investment potential.

The analysis is based on typical 2 bedroom properties (median asking prices and rents) and combines changes in the capital values and gross rental yields. The current top 10 areas attracting the highest real yields are all in London, but the study can now reveal that the worst locations are to be found throughout the UK. All of the worst performing areas attract negative real yields and will prove very interesting reading for potential buy-to-let investors.

Worst 10 Property Investment Locations - based on Real Rental Yields for 2-bed properties (February 2013)


Doug Shephard, director at Home.co.uk, commented;

"The average gross rental yield of these areas is currently running at a very healthy 6%, but landlords must consider the rise and fall of capital values when assessing a buy-to-let investment. This study shows that if investors in these worst affected areas are simply taking a short-sighted view, based on rental income, then they could be in for a nasty surprise."

"Given our new research on yields, these are areas of the UK where landlords are losing money just by owning the property and that is even before tackling the potential issue of void periods."

continues: http://www.home.co.uk/company/press/btl_disaster_zones_property_investors_beware.htm

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