House Prices

The research reveals that Landlords in the South are chasing lower house prices in the North in a quest for higher rental yields due to lower property prices.  On average, 76% of Northerners invest in the region they live in vs. 65% of Southerners.  

Chart One - Regional Investment Patterns for Landlords who invest in the same region they live in: 

Region	Landlords who invest in the region they live in (%)	Average distance they travel to get to their properties (miles)*	Average amount of time taken to travel to their properties*
Scotland	100%	45	1 hr 09 min
Wales	88%	11	18 min
Yorkshire	85%	20	40 min
West Midlands	81%	14	24 min
North West	76%	6	12 min
South West	75%	16	23 min
East Anglia	71%	15	19 min
London	67.74%	9	21 min
North	66%	11	16 min
South East	44%	20	5 min
AVERAGE		16.7	25 min

• The average buy-to-let investor, who invests in the region they live in, lives 16.7 miles or 25 minutes drive away from their property.
• Buy to let investors are more likely to invest in the region they live in than another region, proving that knowledge of the local property market is highly prized.
• Scots are the most patriotic landlords with 100% of those surveyed investing in Scotland .  They also travel the farthest (45 miles) to get to their properties in an average time of 1 hour 9 minutes.
• Landlords in Wales (88%) and Yorkshire (85%) also prefer to invest in their own ‘backyard’ although they do have to travel further than those in the North West and London to do so.
• Investors in the South East (44%), North East (66%) and London (67.7%) are least likely to live in the same region they invest in. In London/South East, this is due to high house prices, which makes finding a suitable buy-to-let property more difficult. 

Chart Two - Regional Investment Patterns for Landlords who invest in a different region to the one they live in:

Region	Landlords who invest in a different region to the one they reside in (%)	Average distance they travel to get to their properties (miles)*	Average amount of time taken to travel to their properties*
South East	56%	191	3 hrs 28 min
North	34%	3	8 min
London	32.26%	148	2 hours 54 min
East Anglia	29%	94	1 hour 44 min
South West	25%	236	4 hours 30 min
North West	24%	68	1 hour 25 min
West Midlands	19%	150	2 hours 52 min
Yorkshire	15%	42	1 hour
Wales	12%	77	3 hours 21 min
Scotland	0%	n/a	n/a
AVERAGE		100	2 hour 8 min

 

• The average buy-to-let investor who invests in a different region to the one they reside in lives 100 miles or 2 hours 8 minutes drive away from their property.
• Due to high house prices, landlords in the South East are the most likely to invest in properties outside their region.  They are prepared to drive almost 200 miles (191 miles) or 3 hours and 28 minutes to get to their properties. 
• Landlords in the South West travel the furthest to get to their properties, taking 4 and a half hours to travel 236 miles.

Top advantages of living close to your buy-to-let property: 

• Specialised local knowledge about factors affecting house prices e.g. If you live in an area, you know if the regulars at the local pub are noisy at closing time so the pretty cottage opposite isn’t such a good buy.
• Access to local sources of information such as local papers and estate agents windows.
• It is easier to spot if a property which is being sold at ‘under market value’ if you know the prices (and the estate agents) in the area well.
• You don’t have to employ a letting agent, as you are close enough to manage the property yourself.

It is easier to ‘keep an eye’ on how your tenants are treating your property as you can drive past and check.