Login to UKBP
Commercial Property News
Northern investment property 'more susceptible to economic changes'
Buyers looking for investment property in the north of England may be interested in claims the region could be harder hit by changes in the economy than the south.
This is the view of Timothy Lambert, head of consulting at Ducalian, which specialises in residential and commercial property investments nationally and overseas.
He believes this is partly due to the fact there is a lot of money in parts of the south to keep the property prices stable.
"Somewhere such as Kensington and Chelsea is in a bubble and not subject to the same property fluctuations as the rest of the country," he claims.
High earnings and foreign money enter the market in such places, which means future changes in the economy may have less of an impact.
But parts of the north are "much more susceptible" to the economic situation, with Sunderland cited as an example of a place that can "paint a bleaker picture" than other localities.
Mr Lambert's comments follow an interview in the Independent with Liam Bailey, head of residential research at Knight Frank.
He said London is better-placed to survive a future downturn than other regions.
"I think what will happen here is what has happened in the US and the most economically disadvantaged areas in the country will suffer the most from any future house price falls," Mr Bailey predicted.
And Mr Lambert agrees that investors need to be prepared for a potential drop in property values, advising that people go into a purchase with a ten-year view in mind.
He explains considering a two or three-year investment "would be dangerous in the current climate".
Interest rates are set to stay at their low level, but a rise could mean repossessions and default become more common, which could have an effect on the market, the expert continues.
Those looking at investment properties would be wise to research the area of their purchase, as well as keeping an eye on national data.
Posted by Tom Baker
This is the view of Timothy Lambert, head of consulting at Ducalian, which specialises in residential and commercial property investments nationally and overseas.
He believes this is partly due to the fact there is a lot of money in parts of the south to keep the property prices stable.
"Somewhere such as Kensington and Chelsea is in a bubble and not subject to the same property fluctuations as the rest of the country," he claims.
High earnings and foreign money enter the market in such places, which means future changes in the economy may have less of an impact.
But parts of the north are "much more susceptible" to the economic situation, with Sunderland cited as an example of a place that can "paint a bleaker picture" than other localities.
Mr Lambert's comments follow an interview in the Independent with Liam Bailey, head of residential research at Knight Frank.
He said London is better-placed to survive a future downturn than other regions.
"I think what will happen here is what has happened in the US and the most economically disadvantaged areas in the country will suffer the most from any future house price falls," Mr Bailey predicted.
And Mr Lambert agrees that investors need to be prepared for a potential drop in property values, advising that people go into a purchase with a ten-year view in mind.
He explains considering a two or three-year investment "would be dangerous in the current climate".
Interest rates are set to stay at their low level, but a rise could mean repossessions and default become more common, which could have an effect on the market, the expert continues.
Those looking at investment properties would be wise to research the area of their purchase, as well as keeping an eye on national data.
Posted by Tom Baker
Tue, 17th Aug 2010