Assetz warn against buying in risky areas

Published 23 January 2012

Property investors should avoid ploughing their money into emerging locations and stick to buying properties in established areas, according to property investment analysts Assetz.

The company argue that people living in potentially “up and coming” locations are far too reliant on sectors which are at risk from high levels of unemployment, restricting their ability to either buy property or keep up with rental payments. 

Rather than taking a gamble on secondary locations, Assetz advises investors to stick to popular residential areas where there is good infrastructure and a strong employment market, such as most of London. The firm also believes that upmarket commuter hotspots around all major cities will also see price growth.

Stuart Law, chief executive of buy-to-let group Assetz, said: “Now is not the time to take a punt on potentially up and coming locations, or those that are dependent on sectors which are at risk from high levels of unemployment.

“The deepening eurozone crisis is far from over and it will no doubt continue to impact the property market here in the UK by limiting the amount banks are able to lend and stifling consumer confidence.

 “Buying in a strong location will help deliver a reliable rental income and a good supply of quality tenants, albeit alongside only modest capital growth for the time being.”