Even in London, which boasts some of the highest house prices in the UK, 54% of investors still choose to buy a property within five miles of their principal residence.
However, this is marginally down from figures in 2005 when 80% of Landlords invested in the area they lived in. Of the eleven regions tracked, seven saw the number of ‘local landlords’ fall on an annual basis while three rose and one remained the same.
The North East (-20%) saw the largest decrease in ‘local landlords’ as investors looked to the Midlands and Yorkshire for their rental properties. The number of property investors in London (-10%) also dropped marginally as more and more landlords were priced out of the Capital as property prices continued to rise sharply.
Investors who were able to purchase properties in the regions they lived, were forced to travel further afield to find buy-to-let bargains. In 2005, landlords travelled on average of 10 miles (or 18 minutes) to their property but by 2006, this has risen to 20 miles (or 33 minutes).
In 2006, the 22% of landlords who invested outside the region they lived in were forced to travel considerably further (122 miles) for a longer period of time (2 hours 20 minutes). This is an increase on average figures recorded in 2005 – 115 miles and 1 hour 43 minutes.
Landlords in the South East (50%), London (48%), and South West (33%) where property prices have rocketed over the last few years were the most likely to invest in other regions.
Lee Grandin, managing director of Landlord Mortgages, commented: “Traditionally, landlords have tried to live as close to their rental property as possible as this means that it is much easier to deal with any problems. However, this research shows that high property prices are forcing investors to find their buy-to-let properties much further afield.
"Landlords in the South East, London and the South West are most likely to invest in a region other than the one that they live in. These investors are looking further afield for buy-to-let bargains and purchasing properties several hours’ drive away. This trend is likely to mean even fiercer competition for ideal properties across the UK so investors need to do their research.
“Despite the fact that this data shows the ‘decline of the local landlord’, we would encourage our investors to consider purchasing their buy-to-let property as close to home as possible. Local knowledge and the ability to be a ‘hands on’ landlord can often mean the difference between buy-to-let success and failure so spending extra time and even money finding a local investment will pay off in the long run.”
