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Beware Risky Property Locations
New research by property portal Assetz has revealed that property investors should be wary of investing in property locations that are reliant on manufacturing and the public sector.
With the unemployment rising and the eurozone crisis growing ever more dominant, investing in such property locations could prove risky as transactions levels will be lower as property owners will be unable to afford to buy or to rent.
And this is despite expected 5% increases in rent during 2012! Without a job, tenants will be at a higher risk of falling into rental arrears…
But what about the rest of the UK property market?
Fortunately, not all areas will be as affected. For instance, property experts continue to put stock in London property investments and commuter hotspots (such as those surrounding major cities).
In these property locations, property experts expect rental values to continue growing, as more and more first time buyers are forced onto the buy to let market due to limited mortgage finance.
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