Is It Best to Buy London Property?

There’s no doubt that London is a desirable place to live. With its unique culture and central location, it’s no surprise that London property is in high demand. But is it always best to buy London property? Or are there cases when it might be better to look elsewhere? In this blog post, we take a closer look at the reasons for buying London property:

1. Continuous capital growth.

Since the end of 2008, London house prices are up 76%. Our research shows that, on average, prices have increased by 45.6% since the start of 2010. Additionally, Marsh & Parsons’ latest quarterly report is forecasting a 5% growth in house prices in the next 12 months – a very reasonable return when you consider other investment classes. Despite concerns about the future of the economy, London property prices continue to rise.

This is due to a number of factors, including low interest rates and increasing consumer confidence.

As a result, now is a good time to invest in London property. Prices are predicted to continue to rise in the short-term, and although there may be some ups and downs in the longer term, over the long-term London property has proven to be a sound investment.

2. Rising rents.

Despite the challenges posed by the pandemic, London continues to be a highly desirable place to live. This is reflected in the city’s housing market, where both rents and prices are on the rise. According to recent research, the average weekly rent in Prime London is now 628 per week, up 3% from last year. This trend looks set to continue in the coming months, as demand for rental properties remains high.

For tenants, this means that renting is becoming increasingly expensive. In fact, studies show that Londoners are paying an extra 179 per month on rent, compared to a mortgage, for the same property. For many people, buying a home is therefore a more sensible option than renting. With interest rates remaining low, now is a great time to get on the property ladder and secure your future in London.

3. Supply vs. demand.

There is a marked difference between the Prime Central London (PCL) and Outer Prime London (OPL) markets when it comes to the supply and demand balance. While PCL has seen an increase in the number of properties coming onto the market, there has been a corresponding decrease in the number of buyers. This has led to a increase in competition and a decrease in prices.

In contrast, OPL has seen a decrease in the number of properties coming onto the market, while the number of buyers has remained steady. This has resulted in less competition and higher prices. While both markets are currently experiencing challenges, it is clear that they are responding in different ways.

4. Luxury homes up for investment.

London is one of the world’s most desirable locations for luxury real estate. Located in the heart of England’s capital, it offers a unique mix of history, culture, and commerce. London is home to some of the world’s most famous landmarks, including the Tower of London and Buckingham Palace, as well as a number of prestigious schools and universities.

Additionally, London is a hub for business and finance, with many of the world’s biggest banks and corporations headquartered here. As a result, it offers a rare combination of investment potential and lifestyle amenities. For these reasons, luxury properties in London are highly sought-after by investors from all over the world.