London Investment Guide

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London Investment Guide

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Investing In London Property

A cultural hub filled with renowned tourist attractions and endless business opportunities, it’s easy to see why potential investors would jump at the chance to invest in London property. While London remains one of the world’s most dynamic cities, however, recent figures suggest that property investment in London isn’t the most lucrative route to take.

High property prices are turning more investors away from London investment while decreasing rental price growth has led to some disappointing rental yields. Those investing in buy to let property in London will get less return on investment than they would if they looked elsewhere in the UK. In fact, records show that more people are choosing to leave London and take advantage of the housing market, universities, and business opportunities up North.

In Liverpool, you could purchase 4x two bedroom buy to let apartments for the price of one in London and achieve double the returns.

Michael Gledhill, RWinvest

London Property Investment

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Research the London Property Market

It’s essential that when investing in London property, you consider affordability and demand. Although many property prices are higher than in other UK areas, London still has some more affordable locations to consider, so it’s important to do your research.

If you want to invest in London, then property prices are lower as you move further out of the city centre. However, rent is not always lower, which means that yields can be much better. You should also keep in mind that transport links have a significant impact on London prices and rents. Properties that have easy access to a tube or rail station will grow in value more easily and tenants will be willing to pay higher rental fees. As a tip, remember that London commuters prefer to be no longer than 30 minutes from central London if possible.

Just because investment in London isn’t looking promising right now when it comes to UK property investment, things are predicted to look up in the future. Areas such as White Chapel, Canary Wharf and Old Oak Park are all expected to experience property growth by 2020 due to several upcoming regeneration projects.

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Look up North

Unfortunately, the current London market is over-saturated. This means you could have to opt for a lower rental income if there isn’t an available tenant who wants to rent out your property. This is something to consider when looking at London property investment, as this, paired with high property prices and a low-performing market indicates that it might be worth looking elsewhere for your investment.

Choosing the right location is about knowing where will produce great successes and leave you with tons of capital appreciation. London property investment might not be the best option, but there are plenty of investment opportunities in the North of England if you want higher rental yields and more affordable property prices.

A house in the likes of Liverpool is almost a quarter of the price you’d pay in central London. In investment terms, this would mean that in Liverpool you could purchase four buy to let properties for the price of one in London. Thus, building a successful property portfolio and making four times the amount you would on one single property.

Why wait until 2020 when the Northern property market is on the up? Cities like Liverpool, Manchester and Leeds have countless opportunities and allow for huge capital growth, especially in the top buy to let postcodes.

For more information on UK investments, check out our area guides.

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