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The high end spot where home owning has fallen out of fashion

by ARPM

While our Prime Minister publically bangs his drum about turning Generation Rent into Generation Buy, the memo hasn’t reached one of London’s most affluent areas. It has emerged that 44% of the property stock in the Royal Borough of Kensington and Chelsea is in the private rented sector and not owner-occupier status.

While you may think these buy-to-lets are palatial palaces fit for the international glitterati, 8,244 of these rental properties are actually HMOs. The sheer volume of house shares has led to the local council there launching its own HMO licensing scheme for the sector.

More rental properties in prime Central London and across the UK may be on the cards, if new research by Keystone Property Finance is an accurate guide. It reports that 58% of its clients have applied for buy-to-let mortgages from its higher value loan range, where borrowers can access funds of up to £1 million.

The specialist lenders says the stamp duty holiday is just one reason why landlords are trying to purchase more expensive properties, with 15% of all sales in November 2020 attributed to landlords – the highest level for four years. Keystone also added that investors continue to take out larger mortgages in expectation of a continued increase in capital appreciation and positive rental yields.

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