A letting agent in London has produced figures showing that buy to let landlords far prefer older property to new build apartments. Ludlowthompson.com report that only 12% of landlords planning to buy additional property in the next six months intend to buy newly built homes. In March the figure was 26%.
This is further evidence of the over-supply of flats and the difficulties being faced by developers trying to sell them. In the boom, builders rushed to develop blocks of flats but as the market turned down it became clear that there far too many of them around. Stephen Ludlow said “New build flats are often built in huge blocks with other identical units. They are almost a commodity. New apartments can lose their premium over second – hand property within a couple of years”.
However, buy to let landlords seem reasonably confident about the market because 73% of buy to let investors in the survey expect prices to rise over the next six months and 89% expect rents to rise or stay the same. 24% of landlords expect voids to decrease over the next six months. The survey was reported by Ludlowthompson on the 11th November 2009.
Have you seen bargain basement prices for new build flats in your area?
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