The Property Market in London
London's property market has historically been a safe haven for property investors seeking stability amid global economic turbulence, both domestic and international. Despite occasional fluctuations, the market has followed an upward trend in recent years, making it the largest property market in the UK.
When it comes to investing in London property, there are two main sectors to consider: Central London and Greater London, which includes the commuter belt. Each area offers unique investment opportunities, including luxury properties in London for potential investors with larger budgets.
House Prices and Growth in Central London
The average house prices in London vary depending on the location, with apartments being the most common type of property sold in the last year, according to Rightmove, with an overall average price of £725,611. Terraced properties and semi-detached properties sold for higher averages of £852,769 and £922,277, respectively. Overall, sold prices in London over the last year were up 22% from the previous year and 28% from the 2016 peak of £568,402. In fact, prime Central London locations have an average property value of more than £1.3m.
One of the main attractions of investing in London property is the guaranteed increase in value over time due to the chronic shortage of property. London property values are significantly higher than the rest of the UK, where average prices are just £290,000.
Investing in apartments in London can provide a reliable source of income due to the high demand for rental properties in the city. Furthermore, luxury properties in London offer the potential for significant long-term capital appreciation.
If you're considering buying property in London, it's important to conduct thorough research and seek professional advice such as with Mangate Assets to make informed investment decisions.
Developments Map View
Private rents across London increased considerably over the last year, surpassing pre-pandemic rates.
The central London rental market is experiencing a lack of supply and increasing demand within both the apartment-sharing and prime residential markets as renters are returning to inner London.
Savills reported that rents have risen at the highest rate ever recorded in London’s most expensive areas, as renters returning to the capital post-pandemic far outnumber the homes available to let.
Rents in March 2023 are 9.85% higher than the same time last year.