City rental properties a good investment again, say ex-pats

A mortgage lender specialising in working with ex-pat and foreign buy to let investors says the city apartment and house remain popular, despite the ‘race for space’ during Covid.

Guernsey-based Skipton International says London tops the list, with demand for quality rental accommodation far outweighing supply, as workers return to offices.

Skipton’s own figures show that E14 - Canary Wharf, Poplar and Limehouse - is the most popular London postcode to buy for rental purposes, closely followed by SW11 (Wandsworth) and W3 (Acton). 

The lender’s mortgage manager Lorraine McLean says: “Strong rental growth in the capital continues apace, and our mortgage pipeline is currently breaking all previous records

“Whilst interest rates may be rising, it’s important to remember that over the last 10  years or so the Bank of England has kept Base Rate exceptionally low. Having worked in the mortgage sector for 30 years, and with my knowledge of the sector historically, I would comment that an increase of 0.25 per cent is relatively slight. In addition, when looking at long term trends, mortgage interest rates remain at a very low level.”

According to a recent report from Zoopla, the average London rent in the first three months of 2022 was £995, up from £897 during the same period a year ago. This represents an 11 per cent increase, with no signs of demand abating.