LendInvest has welcomed changes in planning permissions and stamp duty, which it says have boosted the property market outside the M25.
The online property lender has seen a surge in client appetite in this area relating to planning changes which have meant old commercial buildings can be converted to residential and vacant buildings can be knocked down and replaced with more energy-saving new builds.
LendInvest has also seen an effect in the market outside of the greater London area, as a result of the stamp duty threshold being raised to £500,000 last month.
“This could grow even further in a post-Covid-19 world where commercial space might be in less demand and the government wants to focus on building homes, creating opportunities for investors who find the right property,” LendInvest said in a blog on its website.
“I have also noticed that the recent changes in stamp duty has helped boost the appetite even further.”
The lender said that the Covid-19 pandemic has led to more demand to work from home and live outside of the commuter belt, leading to greater yield for buy-to-let landlords and interest from developers in the in-demand outer suburbs.
And although yield in London is not as strong as in the North, LendInvest said there is still excellent opportunities in the capital, such as to extend a property or split a property up into several different ones to add value.
“If you research hard enough you are still able to find excellent opportunities within the London market where you can gain both good yielding properties as well as excellent capital growth,” LendInvest said in the blog.
“As with anything, I feel knowing your market and sufficient research is key when investing and I continue to see good demand for both bridging and BTL within the London market.
“As previously mentioned I have already seen demand grow in the home counties as a result of lockdown and new remote working practices.
“Investors able to support this demand in The Home Counties will potentially reap the benefits, whilst the London market will maintain its familiar resilience.”
It has also launched a structured property finance team to provide tailored solutions to complex, large property deals.