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Chris Bell

London Property Investment: Why it maintains a positive outlook

When it comes to property investment in London, you might be forgiven for asking the same question as everyone else, “What about Brexit”?

But rest assured, the London property market is alive and kicking. Here are some reasons why London and the South East are a great investment option.

Growth or yield

The best part about investing in London is that you are really investing in miniature housing markets. So you have options, whether your goal is growth or yield. There has been a remarkable advance in the transport infrastructure such as Crossrail. This has made London an attractive option for both residential or commercial property investment.

Look, the transport investment has generated more commuter hubs that offer clear growth opportunities for investors. If you are looking for yield, then you can look to some of the more mature areas.

Risk/reward ratio is good

London is a thriving city and home to many industries and businesses. Regardless of the political and economic climate, there is enough opportunity and activity in London, particularly in innovative and disruptive businesses. Jobs and talent are never going to be in shortage and therefore the demand for commercial and residential properties will maintain a certain peak regardless of speculation.

The risk to reward ratio is quite favourable.

Property Appreciation in London

According to the Office for National Statistics, the average London home cost £115,000 twenty years ago, growing to an average of £351,000 in 2008 and around £671,412 as in 2018.

Capital appreciation is the primary force driving people to invest in London property. There is still incredible potential for London properties to grow in value in recent years.

Some recent HPI index results also show that Barking and Dagenham, Newham, Havering and Croydon are some of the most affordable places if you want to start your property portfolio in London. These are also the areas that show strong demand for property from investors and home buyers.

A vast variety of investment niches

You might first think of the residential market when thinking of London property investment, but the flourishing commercial property market also deserves a mention. There is a constant demand for office space and other more innovative forms of commercial property like co-working spaces, or specialist niches ranging from care homes to hotels.

The fact is that London is one of the most densely populated cities in the world and demand will always be higher than the supply. The idea is to select your property strategically and strike when the time is right.

Options for both short and longer-term investments

London provides investment opportunities for all types of investors. Those looking for a longer term and those searching for a short term investment. The speed of resale in the London property market is almost “blink and you miss it”.

And on the other hand, capital appreciation and the continuous development mean that if you are willing to hold your investment, you will find plenty of rewards.

London is truly international

London is a truly cosmopolitan city with its multicultural and diverse population. It welcomes people from around the world and also enables them to invest in the property market. This makes for a buoyant property market that is always busy.

Foreign interest in the London property market has remained strong for a while now. There is particular interest from Chinese and Hong Kong-based investors, in part due to the strong exchange rate against the pound and faith in the long term prospects of investing in London.

To sum it up

Be it affordability, return on investment or long-term growth that you are interested, London will always remain an attractive option for property investment.