Is London a good place to invest in property?
London has historically performed excellently for investors. That said, with relatively slow growth following Brexit, the capital’s expected price growth of 4% over the next five years is expected to under-perform against regional cores.
This means alternatives such as the West Midlands and the North West are typically more attractive in the medium to long-term.
However, London is still and will always remain one of the most investable places in the world due to the global strength of the UK economy and the amount of inward investment it receives – particularly from the Fintech sector. While London property is still seeing slow recovery, it remains a resilient asset.
Key London Investment Stats
For your next property investment
2020 – 2022
Prices in the South East will outpace national average.
People left London in 2019 for more affordable markets.
Price rise in London since 2000 according to Zoopla.
Alternatives to London Investments
If you’re looking for a lower entry price point than the capital then the London Commuter Belt might be for you. With many people leaving the capital for neighbouring regions and London’s economical strength supporting these same locations, a clear strategy is to target the commuter towns.
Want to know where in the London Commuter Belt you should be identifying? We’ve got an entire post dedicated to seven of the best areas outside of London to invest in.
London Rental Market
While supply in the capital has increased during 2020, demand hasn’t followed suit, putting downward pressure on rental prices. With the average rental price in Greater London now at £2,046, we’ve seen a 3% decline since the start of the year.
The biggest declines have been seen in central London, where tourism, travel and a shift in working culture have impacted demand.
This is the second time rents have gone into negative territory for London since 2017 – when rents declined by 2.8% after the stamp duty surcharge was introduced.
However, Savills predicts that rental prices across Greater London will grow higher than anywhere else in the UK at 16.3% over the next 5 years.