If You Are Looking To Buy Property London Is Still A Sound Investment!

Posted on March 20, 2008
Filed Under Real Estate |

When it comes to property, UK house prices are starting to slow down and some experts are saying they have reached their peak. But if you are still looking to buy property London has always seen faster growth and higher returns than the rest of the country, so how has the capital faired in the slowdown? Surprisingly for those investors still looking to purchase property London still has many excellent opportunities.

We will show you in this article that contrary to many experts opinion, the London flat and housing market continues to provide an excellent opportunity for investors and will probably carry on doing so for a long time.

The first factor to consider is that there is a large difference in prices and growth in different areas of London. While some areas have reached a plateau in terms of growth, others are nowhere near their peak. In fact over the next ten years, regeneration projects are going to mean that many parts of London are likely to see record growth. Therefore if you are seeking to purchase property, London presents a huge opportunity.

For instance one of the best places to invest in London due to growth potential is Notting Hill. Prices recently dropped in this area even though it is a very trendy place to live. This has created an opportunity to buy property to let in a very trendy area as prices are now starting to rise again.

The enormous regeneration scheme in London’s East end due to the 2012 Olympics has created a superb opportunity in Stratford. The whole area is going to be transformed in the next few years. Purchasing property for sale here could turn out to be a very profitable investment. A third area to consider is Peckham. In the past this was considered one of the most run down areas in England. However it recently became the recipient of a £300 million investment and regeneration package and has now even won a tourism award! So even for those looking to buy cheap property, London still holds some excellent opportunities.

What you may find surprising is that the price of property has been and continues to be affected by investors from overseas. To put this into perspective more than sixty per cent of all houses, apartments and flats and other property for sale costing more than four million pounds were bought by overseas investors. Usually these are high paid executives and brokers working in the city

Previously property purchased for the duration of a job contract in the capital would be sold when the employment ended. However due to the price rises of London property many are now retaining ownership of the properties and looking on them as a capital investment while earning income from property rental. This along with other factors has continued to create the shortage of properties on the market which has further pushed up prices.

This is a contributing factor which makes London such an amazing opportunity for property investment. In fact within the next ten years the number of people living in London will skyrocket by eight hundred thousand. At this projected growth, even with the high rate of new properties being built there will be insufficient properties available to meet the demand. As a result there will be a shortage of London properties for the foreseeable future.

New properties are being built at an astounding rate but won’t be able to keep up with the demand … and as long as demand outstrips supply, prices will continue to rise and finding tenants wanting property to rent will not be a problem.

So there are still very lucrative investment opportunities in London for buying property to let.

The huge variation in house prices in different boroughs, combined with regeneration investment, overseas buying, the demand for new housing and property for rent, will ensure that for those who want to buy property London still represents a solid opportunity and will continue to do so for some time.

Tags: Real Estate

If You Are Looking To Buy Property London Is Still A Sound Investment!

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