The increased awareness of the Financial Services Compensation Scheme covering just £50,000 in any one bank, coupled with low rates of returns on savings, has meant these high-net worth professionals are increasingly turning to residential property as a good home for their hard earned cash.
James Hyman, Partner for Residential Sales, says:
“These traditionally conservative professionals are turning to the London property market where yields and capital appreciation are both predicted to increase over the mid-to long term. Almost 40% of all buyers in recent months have been first time investors from white collar professions such as law, accountancy and medicine. These buyers are location driven looking for quality in a good road or block and property that will attract stable and respectful tenants.
“In addition to buy-to-let investments, many of these professionals are using their savings to help their children onto the property ladder by helping them meet the higher loan to value criteria that most now banks require. These parents are taking the commercial initiative by putting down the deposit to receive better interest rates which makes purchasing a home for their child considerably cheaper than it would be to rent the equivalent property.”
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