London property investors are increasingly interested in buying multiple properties within the same block, or even the entire block, according to a leading buying agent.
Black Brick say that they
are representing several clients and have had a number of enquiries from
investors looking for this kind of opportunity.
The company say that these enquires are in the context of weak sterling and soft pricing, plus a positive view of the long term attractiveness of the London market. They add that buyers are also motivated by the opportunity to obtain discounts by buying multiple units, save Stamp Duty by qualifying as commercial investment, as well as opportunities to increase rental yields by controlling and upgrading the entire block.
Camilla Dell, Black Brick Managing Partner, comments: “We would recommend blocks that are close to transport links, are made up of smaller units, as these are more liquid and easier to rent, and are preferably located in areas that promise future capital growth.” She says that London W2 is attractive for this kind of investment, given that it is undervalued compared to neighbouring Mayfair and Notting Hill and adds: “We’re also looking on behalf of clients at blocks outside prime central London, such as in Stratford and Twickenham. They can offer yields above 5%, which compares favourably with the 3-3.5% available in central London.”
This is a small but interesting development in the London investment market that may have escaped the attention of many agents as well as investors. It perhaps illustrates a trend in the market away from casual and ‘accidental’ landlord and towards the more professional, upscale investor.