Letting agents: Buy-to-let investors avoiding new build flats
News Category: Industry News
Published: 23-Nov-2009
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Research by a London letting agency has revealed that buy-to-let investors are shying away from purchasing new build flats.
Findings by Ludlow Thompson showed that only 12 per cent of investors planning on buying new property in the next six months are set to invest in such properties, down from a figure of 26 per cent in March.
Stephen Ludlow, a director at Ludlow Thompsons letting agents, told Residential Landlord that the sheer amount of new build flats made them a less attractive investment for landlords.
"With so many similar flats going on the market at once landlords have to compete with each other directly on price in order to fill their property," he explained.
He added that the problem was particularly acute in cities like Manchester, Nottingham and Leeds.
Similar sentiments were echoed by David Adams of Chesterton Humberts estate agents in a Daily Telegraph article about the death of loft living.
He stated his belief that the market for new build flats in city centres "has now gone".
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