London has been experiencing an undisrupted property cycle for the last ten years, and despite some challenges faced by other property markets in Europe, the city of London’s property market is still quite healthy. Prices for property in London have decreased – they have been on the decline since 2017, in fact – and this bodes well for those who are interested in acquiring property in the area. Since January 2019, in fact, the price of an average home in London has decreased by about £15,000, and London’s luxury property market has had a decline in price by as much as 25% in some areas as well.
This is the perfect time to take advantage of the decrease in property prices, and investors need not be concerned about the slump in prices because the London property market is stable and will remain stable for years to come. In fact, the price decrease has brought forth more home-hunting activity in the city, with an increase of 5% in buyer interest. So, what other trends should you know about in the London real estate market? Let’s find out.
Table of Contents
First-time buyer opportunities
First-time buyers are benefitting from the decrease in London property prices, and if you are a first-time London property investor, you could strike some excellent deals for London property if you take the leap now. Foreign investors are particularly keen on acquiring London property at the moment as they capitalise on the low British pound to get a discount.
A further fall in prices
According to the Royal Institution of Chartered Surveyors, prices for property in London might well go down further, by up to 5%. What’s more, this isn’t only in London, but in outlying areas as well. This price decrease and stagnation could present a great opportunity for a savvy investor, and it’s your chance as an investor to snap up a great bargain before prices rise again (and they are predicted to do so by 2020).
Higher demand for property for rent
Even with Brexit, we could still expect an increase in demand for property for rent. More people are expected to be looking for rental property in London since more people are still moving to the city for various job and business opportunities.
Higher prices for rental property
Those who buy property in order to let it out can also look forward to higher prices for rental property. The prices for rental property in the city have been consistently on the rise for years, but they will continue to rise since there is a higher demand for London property. In areas such as South Kensington, Maida Vale, and Notting Hill, the rise in rental prices is also predicted to be quite significant.
Despite the uncertainty of Brexit, things remain positive for the London property market. Any drop or pause in the pricing of London property should be seen as an opportunity, as the market is still one of the most stable and secure in the world. The market prices will undoubtedly increase, so before they do, it would be best to make that investment. London property experts recommend buying property and holding on to it for about a year or two (as a minimum) and rent it out during this time so that you can benefit from the higher demand for rental properties in the city. You could well make a significant return as the prices of rental property increase, and now is the perfect time to delve into that lucrative property investment.