In 2016, most parts of the UK experienced property price growth. In some areas, such as Bedfordshire, this was significant, with some properties rising by a fifth in value. However, one location skips the trend – and that’s London.
If you’re interested in investment properties in London, read on.
London Property Prices
According to recent reports, the rate of growth in the capital has dropped below the national average for the first time in nine years. Although overall, prices still continued to rise, they only rose at an annual rate of 3.7%, which was less than the UK average of 4.5%.
Experts suggest that it was only a matter of time before this began to happen. London property prices have been prohibitively expensive for a number of years, particularly in Central London, where it’s not uncommon for averagely sized houses to go for over £1m.
At present, average house prices across the capital are £473,073, which is still significantly above the UK’s average of £205,937 – but may be set to drop further in the future.
What Does the Future Have in Store?
Property investment agents remain unsure about what the future holds for the London property market. Prices are largely dependent on political and economic circumstances, which are rather up in the air at present, due largely to Brexit.
However, the housing shortage in London is likely to keep demand high – and the current trend seems to suggest that more people than ever are moving into rented accommodation. This is bad news for first-time buyers, but good for UK property investors – and it seems that now is an excellent time to look for buy-to-let properties for sale in the city.
Will the Market Recover?
It’s impossible to predict with any certainty what will happen a few years down the line. London is likely to remain a highly popular area, which suggests prices will eventually start rising once more. With increasing numbers of people renting too, becoming a landlord in London seems a wise idea – as demand is currently outstripping supply.
Where to Look?
If you’re looking for investment properties in London, the outer boroughs seem to be the most lucrative at the moment – both in terms of rental yield and capital growth potential. This is particularly the case with places due to get a Crossrail station, as the train line has pushed prices up considerably. Savvy investors are now looking at potential Crossrail 2 locations as good investments for the future.
Affordable locations include Bexley, Barking and Dagenham, Balham and Wandsworth – which currently offer good value for money and excellent ROI.
The Buy2Let Shop in Bromley
If you’re looking for investment properties in London, The Buy2Let Shop can help. We’re a team of expert property investment agents in London, and we’re here to assist with all aspects of your search; from finding the ideal buy-to-let property for sale, to sealing the deal at the right price.
We can also offer support with buying a house at auction, and regularly host property investment seminars, designed to boost your knowledge of the UK property market. To find out more, simply visit The Buy2Let Shop website today.