WHY LONDON IS OFFERING PROPERTY INVESTORS VALUE AGAIN
June 05, 2023
Are you interested in buying UK investment property? Wondering where the best place to invest in the UK is right now? Newly released figures by the housing portal Zoopla show that London is offering property investors excellent value right now; particularly to overseas investors buying in cash.
Why is London offering investors such good value?
Over the last seven years London has experienced a house price growth of 12% - a modest increase in comparison with, say, for example, Wales where house prices have increased by a whopping 46% over the same period. The UK average increase is 32%,
This combination of rents increasing over 20% in the last 2 years plus relatively modest house price growth means percentage rental yields on buy-to-let properties have increased dramatically. Yields over 5% have traditionally been something that was the preserve of northern and regional cities (with London offering sub 4% in many cases) but it is now possible to achieve yields of up to 6% in parts of London. This suggests that over the coming years there will be excellent medium to long term capital appreciation as prices 'catch up' with rents.
1.9% UK house price inflation YoY (May 22-May 23)
12% house price growth in London vs UK average increase of 32% over the last 7 years = higher yields in London and better capital appreciation
“London is not an affordable market with average house prices 2x the UK level. However, low price inflation has improved affordability. There is better value for would-be buyers, especially those looking to buy flats where prices are unchanged since 2016. Increased migration into the UK is likely to be supporting market activity in London.”
- Richard Donnell, Executive Director research, Zoopla. Investment property for sale in london.
LONDON OFFERING INVESTORS EXCELLENT VALUE RIGHT NOW – ESPECIALLY ON NEWBUILD FLATS
Interested in buying London investment property right now?
See our range of new build London developments here with prices starting from as little as £292,000 and only a 10% deposit needed.
Check out our other articles on London property here including a look at whether buying in cash or getting a mortgage is the best way to buy and a recent post on the advantages of buying a property in a regeneration scheme.
Read the Zoopla article in full here.
GEORGE RADFORD
Managing Director
about the AUTHOR
George is the co-founder of RPA Group and Managing Director of the business in the UK and Africa. A qualified Chartered Surveyor (MRICS) with almost 20 years of property investment experience, George has helped his clients to successfully grow and strengthen residential property portfolios over multiple markets and territories. Active in building and advising upon his client’s investments, George is now focusing on procuring UK investments exclusively for RPA Group clients and investors, providing insightful and strategic advice and opportunities.