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Is London a good property Investment?

London is the heart of the UK, and despite some fierce competition from cities in the North like Manchester, it remains a hub for property investment. Despite the challenges the globe has faced during the past 12 months with coronavirus, London is set to make a full recovery relatively quickly. If you are looking for a lower risk investment, London offers both the best liquidity and stability. But what else makes London property a good investment?

Growth

It is no secret that for years, London has seen strong growth in house prices and this trend looks set to continue. Property Deals Insight research has shown that in the last 3 years London property has increased by an average of 5.34%, and this trend looks set to continue. These figures make now a great time to invest in central London property.

London also continues to see considerable growth in the rental market, making buy-to-let properties a fantastic investment. In fact, research has shown that currently, the top 5 areas in the UK with the best rental yield are all in London including Kensington and Chelsea, Westminster and Camden. For many young professionals, owning a home in London is unachievable due to the incredibly high property prices, making renting a great option. This leads us nicely on to our next reason as to why London property is a good investment.

Undersupply continues to drive demand

Right across the UK rental market, there is undersupply. Is this good for renters? No, but it is great for property investors as it provides a great opportunity for buy-to-let property investment. It is estimated that the UK rental market is worth over £1 trillion, and research suggests that by 2039 renters will outnumber homeowners due to ever-increasing house prices. Renters also like the flexibility that comes with renting, making it a favourable option for young professionals as if a job requires they can easily relocate with minimal hassle. 

As mentioned above, all of the areas in the top 5 for rental yield are in London, whether that be central London or greater London supporting the fact that London is a great city to invest in. If you are looking for buy-to-let property investment opportunities in London, you can search for the best deals with the Property Deals Insight deal finder.

Transport connections

Another reason, London property is a great investment is the vast transport links the city has to offer. From the infamous London Underground offering fast and affordable transport across the entire city to the new Uber Boat by Thames Clippers providing a more scenic commute to work. London not only has great transport links for travel within the city but also has great links to London City, Heathrow and Gatwick making travel for international visitors and renters quick and easy. 

Top European City for property investment

London remains at the top of the Global Cities 30 index above San Fransisco, Boston, Paris and New York. Schroder’s Global Cities Index accesses the investment opportunities for cities across the globe. The Index uses four key ranking factors; environmental impact, economic impact, innovation impact and transport impact. These four factors provide a rounded view of investment opportunity within each city. With London taking the top spot, it is clear that globally, London is seen as a great investment opportunity.

Property Deals Insight has a wide range of information available including average rental prices, UK property price trends and average sale prices. To discover all the great data we have to offer.

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