Foreign investors 'drawn to run-down UK properties'
Properties in Britain that have fallen into a state of disrepair are attracting lots of attention from foreign investors, an expert has noted.
According to Dr Rohan Weerasinghe, an author and property investor, run-down buildings in the UK are proving particularly popular with buyers from Italy and Germany at the moment.
He noted that many are looking to snap up these homes in order to renovate them. This, he said, would push up the value of the properties and enable them to be sold on at a cash profit.
"They are looking at anything that can produce a positive monthly cash flow," Dr Weerasinghe observed.
"The focus is less on capital growth as most investors accept that we are far from out of the recession."
Dr Weerasinghe said investors across the globe are viewing rental income as a good means of providing long-term financial security during these tough economic times.
Standard buy-to-let apartments were flagged up as popular options for foreign investors, particularly those that are located in areas of high demand.
Houses of multiple occupation were also said to be highly sought after, as they have the potential to generate high incomes.
Dr Weerasinghe noted that various regions are attracting attention from investors across the globe right now.
Indeed, he pointed out that buy-to-let apartments in northern areas that are "cheaper and rent easily and produce a moderate but steady income" are just as popular as those in parts of London that boast stability and "high rental demand".
This comes shortly after Alex Michelin, co-founder of Finchatton, noted that property investors around the world are increasingly viewing Britain as a good place in which to make a purchase. He said this is partly because it is seen as a "safe and secure" market, when compared with many other European nations.