Property investors retreating to core markets
With the current economic situation, many property investors and landlords are returning to markets that always remain strong, according to one industry expert.
Richard Gale, head of property multi-manager at Aberdeen Asset Management, said that London is one area landlords are focused on, within both the commercial and residential market.
“We have seen some significant previous lenders simply coming out of the market. Income growth is pretty hard for investors to find or even to create,” he added.
Mr Gale noted that the most appealing factor for landlords and investors is security of income, particularly with some inflation protection.
“If your tenant is paying rent that is growing with RPI but their income isn’t, then all you need to do is remind yourself of the Southern Cross issue, which is precisely what happened to them,” he added.
The care home operator shut down, after landlords owning all 752 of its care homes said they wanted to leave the group.
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