London
Featured Properties in London
Looking for an investment property in London? Then you’re in the right place…
London is a city that is almost synonymous with property investment regularly luring in property investors from across the globe. The nation’s capital and economic centre of the UK, London will always be a popular place to invest.
High property prices, modest growth and below-average yields are still not off-putting for investors looking for what is the closest you can get to a ‘sure thing’ when it comes to property investment. Prices will almost certainly always rise, the population – despite recent departures – continues to rise, and it will always be the pace for big companies to conduct big business. This maintains London’s global appeal and investors’ appetite to position part of their portfolio within the M25.
For many property investors looking to invest in UK property, London property will always be on their wish-list for their ultimate, balanced portfolio meaning it will remain an investment hotspot almost into perpetuity.
Why invest in London?
London is a city that is almost synonymous with property investment regularly luring in property investors from across the globe. The nation’s capital and economic centre of the UK, London will always be a popular place to invest.
High property prices, modest growth and below-average yields are still not off-putting for investors looking for what is the closest you can get to a ‘sure thing’ when it comes to property investment. Prices will almost certainly always rise, the population – despite recent departures – continues to rise, and it will always be the pace for big companies to conduct big business. This maintains London’s global appeal and investors’ appetite to position part of their portfolio within the M25.
For many property investors looking to invest in UK property, London property will always be on their wish-list for their ultimate, balanced portfolio meaning it will remain an investment hotspot almost into perpetuity.
Outlined below are three major factors which contribute to London’s eternal appeal to property investors and help explain just why London will always remain a property investment favourite.
Global Powerhouse
As one of the most coveted real estate markets in the world, London remains very popular with investors globally. Even with the high costs involved, relatively low yields and many renters decided to move to the commuter belt, London property is still seen as a safe haven asset to having in any discerning investors portfolio.
Very few places globally have seen the consistency of growth London has demonstrated, even throughout worldwide recessions and pandemics and as a result London property is often seen as a fantastic hedge against inflation. With prices having increased in the city by 612% since 1995, it is easy see why.
Whilst this level of growth is unprecedented and things have cooled slightly, although there is plenty to be optimistic about as an investor moving forward. Savills predict further growth of 8.5% in 2022, a figure that is demonstrative of London’s strength as a global property powerhouse.
One consistent contributing factor to London property’s continued success has been the constant investment in the city’s infrastructure. There have been various outstanding investment schemes put in place throughout the capital, particularly in terms of transport schemes such as Crossrail, which has dramatically improved the city’s connectivity and helped to increase property prices further both in the City and other areas of the capital.
Whilst prices have risen over 70% around Crossrail stations over the last decade there is still plenty more steam in the engine for future growth as more projects are delivered across London to deal with the acute housing shortage.
Increase in property prices around Crossrail stations in the last decade (City Monitor)
The average rent in London (GBP) up to February 2022 (Zoopla)
London’s population in 2022 (ONS)
STRONG ECONOMIC FUNDAMENTALS
With an economy worth over £500 billion London remains the global economic powerhouse it has always been. In spite of Brexit and the global Coronavirus pandemic, it is an economy that keeps growing. In fact, in 2021 it saw a growth of 7.5% – nearly 2% more than was initially predicted. This growth looks set to continue with a predicted rise in GVA of 5% anticipated for 2022.
Despite the boom in remote working that led to many people living and working in London moving out of the city to larger properties in different areas, the major London offices are back in action, and employment in the city is higher than ever. As a result of this, the demand for properties in London is on the rise once again.
London is one of the leading financial centres of the world, serving as a global hub for international banking and finance. The finance sector, predominantly based in the City of London and Canary Wharf, is the bedrock of the city’s economic strength, helping to stimulate huge growth in the region.
Greater London is home to just over 9 million people, and even with the well documented ‘London exodus’ where many have left to commute into the city from nearby towns, the population is continuing to rise annually demonstrating the pull that London, and its thriving economy, remains to have.
As London is one of the most in-demand cities for young professionals to live and work, the demand for rental property is very high, making it a low-risk choice for buy-to-let investors. With the rise of house prices in London and throughout the UK, many young professionals are looking to rent as they struggle to get onto the property ladder themselves, leaving many opportunities for investors in the London rental market.
London has a wide variety of suitable rental investment properties to choose from including apartments and larger properties that are ideal for use as an HMO.
The UK, but London in particular, has a good worldwide reputation as a safe haven for property investment. Both domestic and foreign investors have always found real estate investment in the City of London and the rest of the capital very appealing. The city is very stable economically and financially.
The increase in London’s GVA in 2021 (ONS)
The size (GBP) of London’s economy (ONS)
The percentage of the UK’s GDP that is generated in London (ONS)
SUSTAINABLE GROWTH POTENTIAL
While the London property market has been behind the rest of the UK in terms of growth in recent months, this has not stopped it from being a popular property investment choice for many investors.
After around a decade of rising house prices, COVID-19 caused the capital to experience a huge slowdown. While the property prices in London still remain some of the highest in the country, the growth pace has slowed and even fallen in some parts of the city. However, it is the consistency of growth that London demonstrates that continues to make it attractive to property investors globally.
In the year ending 2021, London house prices on average rose by 6.5% with properties further away from the city centre being beating those in prime central London.
Savills housing forecast for 2022 predicts that the property market activity is going to vary across the capital. The firm expects prime central London, where the top-end properties go for the highest prices, to see a strong house price rise of around 8% over the next year. On the other hand, prime outer London is expected to see an increase of just 4% over the next twelve months – but this is still a significant increase for many of these homes, with values already in the million or multi-million-pound regions.
With, according to Zoopla, the average monthly rent in London sitting at just over £3,400, there are still plenty of opportunities for property investors to make decent money with many excellent options available across the city.
Despite high house prices, lower rental yields, and other downsides of London for property investors, the UK capital is set to remain a very popular investment hotspot. London is a major international city with a strong focus on investment projects and constant regeneration, ensuring that it remains economically important.
Although there are some signs of the property market cooling down in other areas of the UK, estate agents are noting that London is continuing to build momentum.
Average property price increase in London since 1995 (Home)
Predicted property value growth in London in 2022 (Savills)
Average house price increase in London in 2021 (Savillls)
London investment hotspots.
Are you wondering where the best place to invest in London is?
Well, there are a number of options available across the city. Here we’ve highlighted a few popular choices with excellent prospects which should be considered by any serious property investor looking to invest in London.
If you can’t find what you’re looking for, please do feel free to contact us today to speak with one of our senior property consultants who will be happy to assist with your enquiry.
Download your FREE UK 2022 Buy-To-Let Property Guide.
After starting positively with the worst of COVID looking like it is behind us, 2022 has certainly managed to throw up a number of surprises for investors everywhere. However, it is not all doom and gloom.
In this guide, we drill down into how the market has fared for investors so far, and where it looks to be heading.
We are here to help you navigate the market with our consultative, informed and, above all, totally impartial approach.
For an informed overview of what is currently happening in the UK property market feel free to download our UK Buy-to-Let 2022 Guide here.
By submitting your details via this online form you agree to be contacted via email/phone/SMS by Mobibi Invest in relation to its property investment brands. We do not share your personal details with third parties.
For further information, please see our Terms of Use.
London property of the week.
Our featured London property of the week. To find out why we think it’s a great investment opportunity get in touch today.
Find the perfect London investment property for you.
If you would like to find out more about exactly how we can help you achieve your financial goals through property investment and, of course, why we are different from the others, please do get in touch today for a no-obligation consultation.
Likewise, even if you can’t find what you are looking for on our site, our decades’ worth of experience means we can find some off-market opportunities that could work for you.
Get in touch today to see how we can help.
By submitting your details via this online form you agree to be contacted via email/phone/SMS by Mobibi Invest in relation to its property investment brands. We do not share your personal details with third parties.
For further information, please see our Terms of Use.