Tenants are leaving London in record numbers according to a new report by property firm Hamptons.
40% of renters moving home in London chose to leave the capital permanently last year, up from 28% a decade ago, Hamptons estate agents have said.
The number of households leaving the city was 90,370 – double the number in 2012 and the highest since records began.
A huge 38% of tenants moved to the Midlands or North where the ratio of house prices to average earnings is far more affordable at an average of 4.3 compared to a massive 9.7 in the South East.
It is not just the high house price to average earnings ratio that has driven this exodus from the Capital. Many buy to let investors have found that with current higher mortgage rates, their London Buy to lets are losing money each month.
Rents have risen by an enormous 8.3pc across the UK over the last 12 months, the steepest growth since January 2014. This has impacted tenants in the South East and London most, due to the already stretched affordability.
Moving North for lower rents in potentially larger more energy efficient properties is a huge draw, especially for those that can work remotely or transfer to satellite offices in other major cities.
Location has always been the key to investing well. Looking to major cities in the North and Midlands like Birmingham, Liverpool and Manchester should serve you very well in the current climate.
