Due to rising house prices in the south of England, buy to let property seekers are moving northwards to cheaper pastures.
UCB Home Loans claim that rental property sales in the south of England fell by a third in the final quarter of 2000 and first quarter of 2001. In the same period, sales in the midlands increased tenfold and eightfold in East Anglia. Scotland also came from nowhere to rank as the fourth desirable buy to let area.
The reason for the move is easy to see. Although rentals in London and the south are higher than the rest of the country, the cost of purchasing property in London does not completely correspond.
UCB Home Loans pointed out that returns of 8% to 10% can be achieved in some parts of the country due to buying cheaper properties. This is not necessarily the case in London and returns can be 5% or below.