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TheCountOfNowhere

Buy To Leave

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Came across this today:

https://en.wikipedia.org/wiki/Buy_to_let

Buy-to-leave[edit]

In the UK, particularly in London, there is a phenomenon known as 'buy-to-leave' where investors buy properties and leave them empty in order to benefit from rising house prices without the hassle of having to deal with tenants.[11] Nationally 'buy-to-leave' accounts for a small percentage of vacant properties according to the charity Empty Homes,[12] but Kensington and Chelsea council estimated in 2015 that as many as one in four houses in certain parts of their neighbourhood are affected, driving up prices while restricting the number of households that actually live there.[13] Overall long-term empty houses account for 2% of properties in Kensington and Chelsea.[14] In north London, Camden council managed to reduce the number of empty homes by charging a surcharge of 50% on council tax on homes left empty for more than two years.[14]

Some politicians have blamed overseas investors for buying homes and leaving them empty, but research has found that only 2% of overseas buyers of London new-build property would use the property as a second home, with 65% instead intending to rent them out, and 33% buying them as homes for children attending university in London.[15]

As of August 2016 prime central London house prices are reported as falling anything between 2% and 20% in some areas, making the "buy to leave" form of investment a fools errand.

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Came across this today:

https://en.wikipedia.org/wiki/Buy_to_let

Buy-to-leave[edit]

In the UK, particularly in London, there is a phenomenon known as 'buy-to-leave' where investors buy properties and leave them empty in order to benefit from rising house prices without the hassle of having to deal with tenants.[11] Nationally 'buy-to-leave' accounts for a small percentage of vacant properties according to the charity Empty Homes,[12] but Kensington and Chelsea council estimated in 2015 that as many as one in four houses in certain parts of their neighbourhood are affected, driving up prices while restricting the number of households that actually live there.[13] Overall long-term empty houses account for 2% of properties in Kensington and Chelsea.[14] In north London, Camden council managed to reduce the number of empty homes by charging a surcharge of 50% on council tax on homes left empty for more than two years.[14]

Some politicians have blamed overseas investors for buying homes and leaving them empty, but research has found that only 2% of overseas buyers of London new-build property would use the property as a second home, with 65% instead intending to rent them out, and 33% buying them as homes for children attending university in London.[15]

As of August 2016 prime central London house prices are reported as falling anything between 2% and 20% in some areas, making the "buy to leave" form of investment a fools errand.

Almost like it was written by one of us! ;)

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