London is best known for its world-famous tourist attractions, rich history, premier business and financial districts and strong transport connections. The city has been known globally for its financial and political stability, and many property investors see it as one of the top property investment hotspots.
London has some of the most iconic tourist attractions from Buckingham Palace, Big Ben and the Houses of Parliament to Tower Bridge and London Eye. With a large amount of public green space across the city, it’s even the world’s first National Park City.
Its cultural offerings are also second to none. There are some of the top shopping hubs within London, including Oxford Street and Regent Street. And London is home to England football at Wembley Stadium.
With its strong connections as well, it’s an easy place to reach with six international airports serving London, in addition to the hundreds of overground and underground tube and rail stations.
These features all add up to make it such an appealing location for businesses, investors, workers, students and tourists. And the prestige of London can also be felt within the city’s property market.
With its global status, London has a thriving economy with a plethora of business and investment prospects. In 2019, the capital produced £503bn, which was a quarter of the UK’s GDP, and the city continues to power the nation.
There are a handful of major business districts across London, including in the City, Westminster, Canary Wharf, Camden & Islington and Lambeth & Southwark. It’s the top European location for business headquarters with HSBC, BP, Vodafone, Tesco and AstraZeneca all based there.
The number of employment prospects, top-notch universities and tourists from across the globe bring millions of people and investment to the city and continue to increase demand for additional housing.
Over the past few decades, there has been a significant amount of regeneration in the city, which has breathed new life into disused areas of the capital. Currently, there are a number of regeneration projects transforming neighbourhoods as the capital pushes further out.
Development projects are bringing forward hundreds of thousands of new jobs and homes and transport projects, like HS2 and Crossrail, are further improving connectivity. In London, regeneration also often has a substantial impact on local property price rises.
London has been an attractive location for buyers, renters and property investors alike. The city has traditionally been one of the top global property hotspots and the top property investment hotspot within the UK.
It’s often the first place people think of when considering investing in UK property, particularly among international investors. Increasing house prices over the years have often been the most appealing feature of the city’s property market, along with the ever-growing demand for housing.
With strong rental demand, rents have remained strong. From September 2020 to September 2021, rental growth increased by 10% in Prime London, 10.8% in Prime Central London and 13% in Greater London, according to research by Chestertons. Rents are expected to remain strong in the coming months and years.
The average rental yield in the capital sits at 2.93%. Certain boroughs are seeing higher gross yields, including Camden with 4%. While this is lower than some other cities in the UK, London as a whole has proven to be a staple choice for capital appreciation prospects.
In London, the average house price sits at £495,200, according to Zoopla’s September 2021 House Price Index. In the past year, prices have risen by 3.3%. The city has been known for its booming house prices in recent years.
Additional data from Zoopla revealed London saw a whopping £214bn added to property values in the past five years alone. The capital is the most valuable region in Great Britain with homes in the city worth £2.4tn collectively. While London accounts for only 13% of British properties, it’s home to a quarter of the housing wealth.
As the population in London inches towards 10 million, this will continue to create more demand within the city’s property market. And limited supply and land mass is expected to continue to support house price growth in the years to come.
Chestertons Global New Homes has vast experience within the London real estate market, having matched investment properties with portfolio needs for investors all over the world.
Contact us today for assistance with your London property search.