Boom in the borough of buy-to-let
Business is brisk in Barnet, a favourite with landlords
THE spotlight is on Barnet as a buy-tolet location. This is the borough where seven councillors were b r i e f l y pr e - vented from voting and then allowed to vote in property debates, after they revealed they were buy-to-let landlords. The borough continues to attract attention for its buy-to-let potential.
Conservative councillors Dean Cohen, Melvin Cohen, Tom Davey, Helena Hart, Mayor Hugh Rayner, Brian Salinger and Peter Zinkin all declared interests in the private rented sector as Barnet Council prepared to debate good standards in the private rented sector.
The motion — which was not passed — would have made it compulsory for all private landlords to be part of the London Landlord Accreditation Scheme, which aims to recognise good practice and improve conditions for tenants.
Meanwhile, development locally has stepped up a gear. The council is looking for a developer to build up to 7,500 new homes south of Brent Cross Shopping Centre. Redrow is to convert Northway House, a 12-storey office tower in Whetstone, into 145 flats. And at the top end of the market, there are new schemes available from estate agent Martyn Gerrard.
Oakleigh Park is the focus for the more expensive properties in Barnet, which are not immune from the new buy-to-let craze.
“Buy-to-let inquiries are coming at any level,” says Simon Gerrard of estate agent Martyn Gerrard. “Our properties in Oakleigh Park could go to buy-to-let purchasers.They are ideal for someone working in the City who might want rent in Oakleigh Park rather than further into London.”
Applegrove and Gardenvale are six/ seven-bedroom, six-bathroom luxury homes which are not yet at shell stage. Mr Gerrard expects both properties to sell to downsizers but he says that landlords should not rule them out. “Should you reserve them now, you would have the opportunity to bespoke the buildings fully,” he says.
Price rises in and around the capital of up to 20 per cent a year (source: Office for National Statistics) have outstripped increases in rent and this has led to reduced returns, says landlord lender BM Solutions. Its calculations, on the basis of rent received against property value, show best yields in the North of England and Glasgow, with worst yields in central London.
However, outer London is still a good performer. According to agent Knight Frank, gross yields of 4.3 per cent in London zone one compare badly to the UK’s best yields of 7.8 per cent in Glasgow. But London zones three to six achieve not just a healthy 6.6 per cent yield but the country’s best capital growth of 13.5 per cent.
Also in Oakleigh Park is Alisa Lodge, where Martyn Gerrard has sold two flats off-plan and there are five still for sale, including the penthouse.
Whoever the landlords, the upward spiral of property prices is beginning to have an effect on some buyers, leaving only those most savvy with the mortgage companies — and that means professional landlords.
For the right property in the right place, Barnet offers a combination of yield and capital growth that puts it among the most attractive boroughs in London.