Where is the ‘new London’ for landlords?

A number of coastal towns in the South have enjoyed house price growth over the last decade, with something of a boom in the last year. Homes in Salcombe now have an average asking price of £672,874 , closely followed by Sandbanks with £614,726, suggesting an overall rise of over a third in seaside locations.

But it’s not just the coast taking on the capital in terms of pricey property; rents in Essex, Surrey and Oxfordshire are the most expensive in the country outside of Greater London, with a two-bedroom home costing around £2,000 each month. Competition for private rentals in Essex is especially fierce, with up to nine prospective tenants vying for a single room in Harlow. And of course, this high demand only serves to drive up the cost of private rentals. Good news for landlords.

“People moving out of the capital to places in the South East has contributed to double digit growth in rents in some of the most expensive places, like Oxford and Henley-on-Thames,” says Sam Mitchell, head of lettings at Rightmove. “These figures show it’s wrong to think that anywhere outside of London will definitely be cheaper.”

“The latest data put the average price of a property at £178,007, 5.3% higher than in March 2014,” wrote the Guardian’s Hilary Osborne in April, explaining why so many people who would previously have bought a home are still renting. “Although first-time buyer activity picked up in 2014, figures from estate agents Your Move and Reeds Rains suggest a sharp fall in the number of new entrants to the market so far this year.”

With that first rung on the property ladder much higher than ever before, a great many would-be buyers are stuck in the private rental sector for the foreseeable, paying London prices far beyond Zone 4. Keeping that in mind, here are some of the best towns outside the capital to be a landlord:

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Esher, Surrey

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Oxford, Oxfordshire

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Weybridge, Surrey

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Marlow, Buckinghamshire

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Henley-on-Thames

 

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