"Property investors are being forced to the north of the country as new regulations were introduced over the last 12 months. Investors need to evidence that they have a greater level of rental coverage to purchase investment properties, and subsequently they are heading out of London.
"Some may say this is helping supply in London, but is this inadvertently meaning people are refusing to sell as they wait for prices to rise again? Buyers are looking like they will get a better deal, but sellers are also looking to get enough to purchase something better."
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Mr James added that a boost to the market would be likely to come from lenders loosening their criteria.
simon.allin@ft.com
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