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London Property Investment: Should I Invest in London Property?

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    The Ultimate Guide to Property Investment in London

    Is property investment in London still a top choice in 2024?

    Let’s find out in this ultimate London property investment guide.

    Here, you will learn about all the latest property investment London market data to help determine whether you should still invest in London in 2024.

    Other topics in this guide to London property investment include:

    • Is London Property a Good Investment? 
    • Best places to invest in London 
    • Latest investment opportunities London 
    • Where to invest in London 2024
    • Is it worth investing in London property? 

    And more!

    We’ve split the guide into five chapters, so you can read exactly what you want.

    So, keep reading to learn all about real estate investment in London…

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      Chapter 1: Why Invest in London?

      Chapter one of our property investment London guide will discuss the reasons why you might (or might not) choose to invest in London in 2024.

      Here, we will look at three reasons why London property investment is a compelling choice and why it is no longer the best investment you can make.

      Key Topics:

      • Latest Property Investment Market Data
      • Three Reasons Why You Should Invest in London
      • Three Reasons Why You Shouldn’t Invest in London

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      Why Invest in London in 2024?

      London property investment can be a confusing topic to discuss.

      With sky-high prices and lower-than-average rental yields, property investment in London isn’t accessible for everyone.

      Yet, the city still sees its fair share of investment, particularly from foreign sources.

      In fact, a report from Statista in 2018 found that London featured 458 foreign investment projects – 12 times higher than Manchester in second place.

      But why is this the case?

      Let’s find out and explore three reasons investing in London is a wise choice.

      1. London Rent Is Incredibly High

      The main reason behind the continued real estate investment in London is the sky-high rental income generated from property.

      As of 2023, the average rent in the London region is around £4,646 per month.

      For comparison, this is 292% higher than the UK national average, which is incidentally the highest it has ever been at £1,184 PCM, according to HomeLet.

      In fact, London average rent is so high that it practically trebles the rent in every popular UK property investment hotspot, as you can see from the table.

      2. Top Destination for Commercial Real Estate

      While investments in London may not be the standout choice for residential property, commercial real estate investment is another story.

      Taking advantage of London’s serious pull for businesses, investors from across the globe choose London as their ideal commercial property hunting ground.

      In fact, back in 2019, a report from real estate firm Knight Frank found that London was the world’s number one spot for commercial real estate, seeing around £16.2bn worth of investment.

      For comparison, this was higher than the iconic Manhattan (£14.3bn), Paris (£12.1bn), and Hong Kong (£8.4bn).

      Most interestingly, these statistics have continued to persist despite the impact of Covid-19 and Brexit, with Savills reporting that commercial real estate investment is “exceeding expectations” in 2021.

      This considerable level of international investment sets a commercial property investment in London apart from other European cities.

      Around £3.69 billion was spent on commercial real estate in London in 2017 alone from Chinese investors.

      Sadly, for prospective residential investors in London, the same cannot be said for residential real estate – something we will address in a later section.

      3. Massive Regeneration in London

      As the UK capital, London attracts the bulk of UK inward investment, which has led to some considerable regeneration in the city.

      Ever since the 2012 Olympics hosted in London, there has been a series of transformative projects helping the capital continue to flex its economic muscles on the world stage.

      Likely the most extensive upcoming regeneration efforts in the city are:

      • Thamesmead – A 30-year master plan aimed at regenerating the Thamesmead neighbourhood. Work includes 8,000 new homes, 4,000 jobs, and improvements to 5km of riverbank and 7km of canals.
      • Old Oak Common and Park Royal – A £26 billion project set to create a transport superhub, a brand-new high-street and a £3bn Imperial College.
      • Canada Water – Covering 53 acres, this is one of the largest mixed-use regeneration projects in London. It is expected to deliver around 3,000 new homes, 2 million sq ft of workspace and 1 million sq ft of retail, leisure, entertainment and community space.

      The planned regeneration in Canada Water, in particular, is one to keep your eye on, as the expansion of the Jubilee Line by 2029 could likely help develop the area into a major transformation hub.

      To learn more about UK regeneration, be sure to click the link and read our full guide.

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      Why Shouldn’t You Invest in London in 2024?

      Now that we’ve covered three reasons why you should invest in London, it’s time to look at reasons why property investment in London is best avoided for most investors in London.

      These reasons include:

      1. High property prices
      2. Low rental returns
      3. Dwindling rental demand

      Let’s get into it!

      1. High Property Prices for Investment Properties in London

      The primary reason why property investment in London is a poor choice for most UK investors is its affordability.

      Simply put, you will likely struggle to afford investment properties in London due to the enormous prices seen in the area.

      According to the latest UK House Price Index figures, property prices in London are around £885,406.

      From the same source, the wider London region now features an average price of about £533,986.

      These are considerably high numbers, especially compared to the UK average, which currently stands at £289,818.

      That means city of London prices are 205.50% higher than a typical UK property.

      These numbers can be on the low end of the spectrum, with affluent London locations like Kensington and Chelsea having considerably higher property prices.

      Currently, a typical Chelsea property on Zoopla can set you back an eye-watering £2,464,211.

      Likewise, a Kensington property on Zoopla costs, on average, a staggering £2,595,467.

      These property prices are undoubtedly astronomical, which has put many people off property investment in London.

      Factoring in Stamp Duty rates, too, and you could be spending a lot of money on your London rental property or commercial property purchases.

      To work out the latest Stamp Duty rates, be sure to use our free Stamp Duty calculator.

      2. Low Rental Rhttps://www.rw-invest.com/finance/stamp-duty-calculator turns for Property Investment London

      Despite the high rent found in London real estate investment, the high cost of property has led to some dismal rental yields in the capital’s residential property market.

      Understanding rental yields is one of the most important tips for investing in property.

      Rental yields are the return on your investment you earn through rent. It’s calculated by dividing the yearly rental income by the original purchase price and multiplying it by 100 for a percentage.

      These yields are a crucial element of any property investment venture, with higher yields meaning stronger rental returns.

      Using the latest data, the average gross rental yield in the city is around 6.30%.

      While this figure may not seem incredibly low, it’s important to note that this is just the gross yield, meaning expenses aren’t calculated.

      Due to the high cost of living seen in the capital, the NET yields will likely be far lower than this.

      For comparison, it’s common to find properties in Liverpool and Manchester with over 8% NET rental yields.

      These rental yields illustrate why focusing on just rental income per month is not the best measurement, as you can likely get better returns elsewhere due to the lower property prices.

      For example, let’s say you invest in Manchester, a city with house prices of around £203,835.

      For the price of one London property, you could buy three in Manchester with money left over. That means you could expect a yearly rental income of almost £50k – £10k more than London.

      With Northern cities like Liverpool and Manchester offering everything an investor needs for a solid investment, there’s no reason why investors into the UK property market shouldn’t also explore the wide range of opportunities available in these cities.

      This is important to keep in mind if you’re considering buying property in London.

      3. Rental Demand Dwindling With Renters Leaving the Capital

      While there is significant demand for property in London, these numbers have dwindled in recent years.

      Although London property has always been the go-to city for ambitious young people, recent figures have started to show that more people are moving to Northern cities like Manchester.

      Around 13% of Londoners leaving the capital choose to live up North to take advantage of affordable prices and exciting business potential, limiting tenant demand offered by investment in London.

      Recent developments such as MediaCityUK in Salford, home to major business headquarters like the BBC and ITV, are attracting people from around the country.

      This surge of people leaving the capital to move up North is likely to have a big effect on the London property market and change the buy-to-let opportunities available for those who wish to invest in London property.

      Since many people leaving London are young professionals, the demand for quality property with higher-than-average rental yields will diminish, replaced by demand from tenants with lower incomes.

      In fact, this mass exodus of people leaving the capital, accelerated by Covid-19, has led to severe downturns in the local rental market.

      Leading estate agency Chestertons found that London rental stock had dropped by 58% year-on-year in September 2021, with many landlords choosing to sell up.

      This year, experts at Leaders Romans Group expressed continued doubt in the London rental market, stating that the capital’s reputation as one of the best cities in the world to build property is “no longer viable”.

      This is not a good sign for the future of property investment in London and is vital to consider if you’re sizing up investing in London property.

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        Chapter 2: Property Investment London 2023/24 Analysis

        Chapter two of the London Property Guide will analyse the London property market in 2023 / 2024.

        In this section, you will learn about the latest house price growth data, as well as the newest growth predictions for London investment property.

        Key topics:

        • London property prices 2022/23.
        • London property price predictions for 2023 onwards.
        • Analysis of the London property market.
        • What’s it like living in London in 2024?

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        Property Investment London 2023/24

        Summary: 

        • According to the UK House Price Index, London’s current average property price is £885,406. 
          Compared to 2022, London property prices increased by 7.023% in the last 12 months. 
        • London property takes 1.5x times longer to sell.

        After a record-breaking 2020 in the property market, caused by a newfound urge to move homes post-lockdown, many have found the London property market to have been left behind.

        Due to the pandemic, London’s economy was decimated, with employment levels falling, new jobs dropping, and property prices plummeting.

        A report in October 2020 found a staggering 200,000 fewer employees in the capital than in the year prior.

        This resulted in 5% of London residents claiming unemployment benefits.

        In 2023, however, things appear to have bounced back. In fact, London has become more livable since Covid hit – particularly for those with means.

        Taking a closer look, however, whilst the capital has seen some growth amidst the UK’s recent economic struggles, there are still some significant ramifications in the wake of the pandemic.

        The last couple of years has worsened long-festering problems for the city, with the lack of affordable housing and widened inequalities in terms of both life expectancy and income rising exponentially.

        Despite home prices falling in some areas, the cost of borrowing has more than doubled in the last year.

        A recent report from Schroders found housing affordability to be at its worst level in 150 years – with homes costing more than 12 times the average earning in London.

        While house prices in London may have decreased somewhat recently, these prices are still nearly twice as high compared to the rest of the country.

        Currently, the average London property is valued at £885,406, according to the latest available Land Registry data in January 2023.

        This is 7.023% higher than recorded the year prior but is a decrease of 7.11% compared to December 2022.

        These are impressive numbers, but house prices like this may put off many investors looking at buying property in London at an affordable price.

        Alongside this, according to the March 2023 report from Rightmove, it currently takes 70 days for a seller to secure a buyer in London.

        In comparison, it takes 57 days for the average UK property.

        At the same time, rental prices are also on the rise, with the ONS recording a 4.6% increase in private rental prices in London in the 12 months prior to February 2023, up from an increase of 4.3% in the 12 months to January 2023.

        This is while the rest of the UK, excluding London, saw rent increase by 4.7%.

        With all these statistics in mind, it’s a precarious time to consider buying property in London.

        If you want to buy a property in London, especially at an affordable rate, you may find more success, potential profit and faster turnaround by looking at other areas of the UK.

        Property Prices by London Region

        To help you learn more about house prices in London, take a look at the following table to find the average property prices available for each region, according to Zoopla.

        Currently, East London is the cheapest location for real estate investment in London, with the average property valued at £523,043.

        Here you can get flats and terraced houses for just £403,444 and £563,951 respectively, which is incredibly cheap for London.

        The most expensive area is Central London. For a terraced house, you can expect to pay a whopping £3,903,861.

        Due to London property prices, if you are an everyday investor in need of a mortgage loan, many real estate investment London opportunities are unachievable.

        These figures highlight how important it is to do your research when finding the best investment opportunities London has to offer.

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          London-Property-Prices-UK-Table

          London House Price Predictions for 2024 and Beyond

          If you decide that investing in London property is the right choice for you, you’ll likely want to know about the capital growth potential of real estate investments in London.

          Historically, London property has seen huge rises, with the average London property price rising by almost £600k since 2001.

          Naturally, while these London house prices have seen considerable increases in the past, it has now reached the point where percentage increases are now very minimal.

          This is highlighted in the latest property price predictions from Savills.

          Property prices are set to decrease by 12.7% in 2023, a drop that is 4.2% more than the North West and Yorkshire.

          There’s also minimal growth expected in 2023, 2024, and 2025, with an overall five-year increase of -1.7%.

          How Has Covid-19 Affected London Property Investment?

          While 2021 remained a promising year as a whole despite the uncertainty brought by the Covid-19 pandemic, the London property market has experienced some changes that have impacted property investment opportunities in London.

          Most notably, the rental market in London has experienced a shift in line with changing rental market trends.

          As a result of the Covid-19 lockdown, renting habits have changed, which has had dire consequences on the viability of London buy to let.

          A 2020 report from estate agents Benham and Reeves found that the top three tenant priorities are fast broadband, outside space, and proximity to green space.

          Due to the nature of central London buy to let, more and more people are choosing to leave the hustle and bustle of the capital for a more peaceful living experience elsewhere.

          This is why modern developments like Central Park in Liverpool offer outdoor green spaces to meet this growing demand.

          What Tenant Should You Target for Property Investment London?

          With this new era of tenant priorities, what type of tenant should you target to make the best property investment in London?

          Well, around 40% of Londoners are aged between 20 and 44.

          This is significant for investors as those ages are typically referred to as Generation Rent.

          Generation Rent is usually used to describe this age group as they are typically unable to afford hiking property prices and instead opt to rent.

          With so many Generation Rent members in the city, it would be wise to target younger people.

          This means providing more affordable properties to rent, modern facilities, and good access to transport links.

          Given the percentage of those living in London aged under 19, another viable choice is to invest in student London investment property.

          If you’re looking at London to invest in rental property, student accommodation can be an excellent investment.

          One of the biggest draws of international investment in the city, London has one of the largest student populations in Europe, with 180,000 students in the University of London alone.

          More and more property developers are providing student rental property and student accommodation in the city, so it may be a good idea to flesh out your London property portfolio with a student flat in London.

          To learn more about student property investment, be sure to check out our all-new 2023 guide.

          What’s it Like Living in London?

          London is iconic.

          With a population of nearly nine million, the city is renowned for being one of the best places to live and work.

          Home to around 15% of the UK population, and 23% of UK-based businesses, the city is overflowing with opportunities for both work and play.

          While the cost of living is higher than anywhere else in the UK, the city has so much to offer residents who can afford the commanding premium of capital city living.

          Amenities

          Undoubtedly one of the significant parts of London living is the fantastic amenities on offer.

          London has more amenities than anywhere in the UK, from restaurants, tourist spots, football stadia, and more.

          In fact, in 2019, there were over 67,000 amenities in the capital, which accounts for 26% of all urban amenities in the UK!

          Of these amenities, around 17,000 are classed as specialist, which includes world-famous destinations like the Royal Albert Hall and Wembley Stadium.

          To put that into context, the next highest city, Manchester, has just 2,500 specialist amenities.

          This means London accounts for a staggering 41% of UK specialist amenities.

          Shopaholics and premium spenders also have a lot on offer in London. With high-end luxury outlets like Selfridges, London features more premium amenities than any other UK city – around 42%.

          While these facilities are excellent, it has had a strong impact on the cost of living.

          According to Numbeo, the cost of living in London for a family of four, not including rent, is around £3,000 – 46.53% higher than in Manchester.

          Transport

          The London Underground and the Tube is perhaps the most famous transport system in the world.

          The Tube has been at the beating heart of London’s economy for over 150 years and allows Londoners to travel across the massive city in minutes.

          Spanning 402km of tracks, around 1.35 billion passengers use the Tube services every year, covering about 83.6 million km annually.

          The busiest station in the capital is Waterloo, with over 100 million annual passengers.

          These are huge numbers and paint the picture of just how vital this unique transport system is for London living.

          And the transport system is to be further improved.

          This includes a £14.8bn Crossrail route and an HS2 route, which will massively help commuters coming to London from nearby towns like Slough and other major UK cities like Birmingham.

          London

          Chapter 3: Best Places to Invest in London 2024

          Chapter three of our guide will help identify the top places to invest in London in 2024.

          Here, you will find a breakdown of the best areas to invest in London by postcode, region, and area name.

          Using the latest data, you will be able to find out where to invest in London property 2024.

          Key topics:

          • Where to invest in London property 2023
          • Best areas to invest in London by postcode
          • Best places to invest in property in London by region
          • Best places to buy London property by area

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            The Best Places to Invest in Property London by Postcode 

            If you’re looking at where to invest in property in London and want the highest yields, the following five postcodes are perfect for you if you are interested in property investment in London.

            The best property investment London postcodes are E20, E4, NW7, SE28, N9.

            • NW7 – Covers the Mill Hill region and can generate solid 7.82% returns despite an astronomical average price on Zoopla of over £830k.
            • E20 – Spans Olympic Park and Stratford and provides gross rental yields of 6.10% on average.
            • SE28 – Consists of Thamesmead and delivers sizeable rental returns of 8.65%, with an average price of over £300k.
            • E4 – Covers Chingford and Highams Park, offering rental yields of 4.43%.
            • N9 – Spans the Lower Edmonton area and provides average house prices of over £360k with 5.61% rental yield returns.

            Other areas that could be considered the best area to invest in London property are Ilford, Romford, Barking, Dagenham, and Harlington.

            This is because these areas also offer decent yields, with high demand levels and high rental income.

            Although still more expensive than elsewhere in the UK, property prices in these locations tend to be more affordable than in other London boroughs.

            This is why market research is vital if you want to know how to invest in London successfully.

            Without knowing the best places to invest in property in London, it can be challenging to make a healthy profit.

            For the most successful London investment, be sure to consider the best property investment London postcodes mentioned.

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              Best Places to Invest in Property London by Region

              Now, it’s time to look at the top places to invest in London by region. Here, you will find the latest market data for house prices in Central London, North London, South London, West London, and East London. To help give you a better idea of where to invest in London property and where to find the best real estate investment in London, here is a guide to some of the best places to invest in London, with details on rental yields, capital growth, and average property prices. All statistics have been calculated and taken from Zoopla’s house price database.

              Avg. House Price: £1,650,757
              Avg. Gross Rental Yield: 3.27%

              Undoubtedly one of the best areas to invest in London if you have the cash, Central London is one of the most iconic areas of London.

              Home to locations like the West End, Buckingham Palace, Big Ben, and Parliament, Central London is one of the best places to live for professionals.

              With access to fantastic business opportunities, unrivalled transport links, restaurants, and sights to see, Central London is one of the most desired UK locations with over one and a half million residents.

              However, according to Zoopla, these attributes come at a premium, with average house prices valued at a staggering £1.65 million.

              Although these costs are high, rent is also huge with some areas like WC2 coming in at £7,167 PCM.

              However, this high rental income isn’t enough to offset the staggering costs, with rental yields in Central London valued at just 3.27%, making it one of the lowest rental returns in the UK.

              Prices and returns can get even worse depending on where you go. A property in the illustrious West End, for instance, can set you back a staggering £2,369,823 with returns of just 1.11%.

              Due to these prices, Central London is typically not considered the best area to invest in London for the average property investor.

              Avg. House Price: £832,033
              Avg. Gross Rental Yield: 5.08%

              Another area to consider when asking where to invest in property in London is in the North.

              North London is a popular spot for London property investments and is considered one of the best areas to invest in London.

              Like Central London, North London has plenty to offer residents with access to London Zoo, Lord’s Cricket Ground, Regent’s Park, Madame Tussauds, and more.

              The region is made up of popular boroughs like Enfield, Hackney, Islington, and Westminster.

              You can expect average property prices here of around £832,033, with rental income valued at £3,519 PCM.

              This puts rental yields in the region at around 5.08%.

              Again, like many places on this list, London is not ideal for the average property buyer, so it will likely not be one of the best places to buy London property for you.

              Avg. House Price: £1,172,498
              Avg. Gross Rental Yield: 3.44%

              West London is another popular spot for London property investments, depending on the borough/area.

              Richmond Upon Thames, for instance, is expensive, with an average price of £545,685 for a flat.

              If you’re looking to invest in London West and get the most out of your money, then boroughs like Hillingdon are your better option.

              Harlington, based in Hillingdon, has an average value of £316,513 for flats and offers returns of 5.44%

              While this is still high compared to the cost of a flat in the North of the UK, it’s about as low as you’re likely to find when investing in London property.

              Overall, you can expect rental yields of just 3.44% in West London, perhaps making it one of the best places to buy London property.

              Avg. House Price: £639,761
              Avg. Gross Rental Yield: 4.53%

              South London is another area that many consider the best place to invest in London.

              Of course, like other London areas, the specific part of South London you choose to invest in plays a significant role in the success of your London investment.

              For example, Thamesmead is seen as an excellent place to invest in London property with high yields of 7.13%.

              Thamesmead is a popular residential area and offers average property prices of £351,397, according to Zoopla.

              Croydon, another South London area, is a popular choice for investment in London.

              Here, property prices are expected to see some of London’s highest growth, with extensive regeneration underway.

              Properties in Croydon can generate a yield of 4.68%.

              Overall, like other regions, South London’s average rental yield is relatively low at around 4.53%.

              Due to the lower London property prices here, South London is widely considered one of London’s best areas to invest in. However, prices here are still hugely expensive.

              Avg. House Price: £523,043
              Avg. Gross Rental Yield: 4.11%

              East London is considered one of the best areas to invest in London.

              Home to popular boroughs Barking and Dagenham, properties in this area are more affordable than in some other parts of the city, making this a good option for those looking to invest in London with a bit of a budget in mind.

              You can get a property in the borough for around £358,311, with returns valued at an excellent 6.42%.

              East London is also home to Ilford and Romford, two popular areas for investment in London.

              Rental yields in these areas are higher than you would find elsewhere in London, with Ilford’s IG11 postcode being able to generate yields of 4.61%, and Romford’s RM9 postcode offering 4.81% yields.

              Due to this combination of high yields and lower property prices, East London is one of the top places to buy London property.

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              Potential for Future Growth With Investment Opportunities London

              While the opportunities for property investment in London aren’t looking particularly promising, some areas are worth considering.

              Several areas in London are expected to experience property growth in the coming years.

              Whitechapel, Canary Wharf, Earls Court, Old Oak Park, and Croydon are all predicted to make their mark on the property map and make perfect choices if you’re wondering where to invest in London property.

              This is due to several regeneration projects, with plans for improved transport links and the creation of thousands of new homes and jobs.

              Select London investment properties have been predicted to reach rental yields as high as 7%.

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                Chapter 4: Alternatives to London Property Investment

                In the penultimate chapter of our guide, we will be looking at alternatives to London property investment in the UK.

                Here, you will find more affordable and higher returning options that compete with property investment in London.

                You’ll learn more about the South East, North West, and West Midlands options performing well in the 2024 property market.

                Key topics:

                • London vs Luton
                • London vs Liverpool and Manchester
                • London vs Birmingham
                • FAQs about property investment in London

                Luton: An Alternative to London Property Investment

                One of the primary motivators behind investors choosing to buy London property is the vast rental demand in the city.

                Naturally, with a large portion of the population focused on London, demand for property is vast.

                But wouldn’t it be great if you could tap into this rental market demand and find a good rental yield in the UK without having to pay London property prices?

                Well, likely, the best way to do this is to invest in a commuter town. Commuter towns are popular with London workers who cannot afford the sky-high prices offered by London.

                Currently, London’s best commuter town is Luton.

                Voted the best commuter town for two consecutive years by estate agents Jackson-Stops and voted the best place to invest for first time buyers in 2021, Luton is a fascinating investment solution for London investors in 2023.

                The Bedfordshire town outperforms London in every aspect of capital growth potential. While gross rental yields are slightly lower than in the capital, you can find world-class Luton investment property like The Hive with huge 5% NET returns.

                The town is also only 22 minutes away from Central London, making it incredibly popular for young professionals.

                You can learn all about Luton property investment and eight reasons you should invest in the town in our complete 2023 guide. Just click the link to read more.

                How Does Property Investment London Compare to the North West?

                We know that London property investments in certain areas can offer a level of return on investment and some expected growth over the years to come.

                But what about those who don’t wish to wait for growth and want to benefit from the highest yields possible?

                The North of England has gained a positive reputation throughout the property market as of late.

                Comfortably the best places to invest in property UK, Liverpool and Manchester boast some of the best market statistics in 2023.

                Outperforming property investment in London through capital growth, affordability, and rental yields, the cities currently boast some of the most lucrative property investment strategies.

                Affordability is especially vital for the North West’s superiority over buy to let London opportunities.

                To make the divide between North and South a little clearer, all you need to do is consider what type of investment properties London offers for the same price up North.

                Put £500,000 towards a London investment, and you can barely purchase a standard one-bedroom apartment on Zoopla.

                Whereas, you could buy a five-bedroom house with a large garden and driveway for the same price in Liverpool.

                The prices of the properties at RWinvest are proof enough that Liverpool and Manchester offer some of the best deals, with our pioneering eco property, ELEMENT – The Quarter starting from just £74,950.

                Look towards London off-plan property, and you’d definitely struggle to find a price anywhere close to this.

                While London property investments and London investment property are incredibly popular amongst overseas investors, more and more people are choosing to invest in the North West thanks to the high potential on offer.

                You can learn more about Liverpool property investment and Manchester property investment by clicking the links.

                How Does Property Investment London Compare to Birmingham?

                As the UK’s second city, you would be forgiven to think London buy to let opportunities outperform those in Birmingham.

                But dig a little below the surface, and you will see that Birmingham property is offering far more lucrative investments in 2023.

                Outperforming London in every measurement except 20-year growth, Birmingham is providing an exciting strategy in 2023.

                With tonnes of regeneration on the way, including the introduction of 80,000 new jobs via HS2 and the Birmingham Big City Plan, the future of the West Midlands city is incredibly bright.

                You can learn all about Birmingham property investment by clicking the link and reading our updated guide for 2023.

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                  FAQs

                  According to most market statistics, it is not a good time to invest in London. 

                  Despite rental prices increasing 4.3% from January 2022 to January 2023 – one of the largest annual percentage changes in the city since August 2015 – the city’s massive costs and the stream of worrisome market predictions outweigh the pros for anyone looking for a viable investment with an affordable budget.

                  If you want to buy investment property in London and other major UK cities, contact RWinvest today. Our investment property starts from just £59,950.

                  Based on the latest market statistics, buying a house in London isn’t the best investment you can make.

                  This is because property prices are costly, with a semi-detached house valued at £825,350 on Zoopla.

                  London’s capital growth is also the lowest in the UK, with -1.7% growth predicted by 2027.

                  Yes, property is a good investment in the UK. This is because you earn two types of income through rent and capital appreciation.

                  The UK housing market has also proven time and time again its reliability and endurance during tough economic crises.

                  Every major event of the past two decades has seen the housing market rally faster and more reliably than other investment options, including the 2008 financial crisis and the COVID-19 pandemic.

                  For example, the housing market was finding record-high prices in 2021, which continued into 2022 to a record high of £296,000 by the end of the year!

                  This is an important factor for investors because this means even if the worst happens and we see another major financial crash, the property market can be relied upon to recover faster than other forms of investment.

                  In March 2023, the Office for Budget Responsibility (OBR) predicted that house prices would fall 10% across the board over the next two years.

                  Despite buyers in London being typically more affluent than the UK average, they are still more likely to borrow more relative to their income and need a bigger deposit in order to buy.

                  According to Savills, this will result in higher interest rates for house prices in London, with prices dropping by 12,7%. More affordable parts of the UK are expected to see smaller price drops.

                  It’s estimated that to live in London comfortably for one person; you will need to earn a salary of around £65,000 a year.

                  Despite previous and slightly ominous reports, the financial market appears to have settled, and the UK is expected to avoid a recession in 2023.

                  Whilst the latest forecast from Savills predicts that house prices could fall by up to 10% across the UK in 2023, this does not mean that investors should be panicking.

                  Think of it as a natural reset button for the housing market after a chaotic year.

                  In this case, housing should be more affordable for many.

                  Savills’ forecast also predicts that house prices will rise overall by 6.2% by 2027. This means that if you see house prices fall in 2023, this is not necessarily a permanent change.

                  In fact, for investors, 2023 presents a prime opportunity to invest in UK property while prices are low but set to increase.

                  Back in 2020, house prices in the UK saw a temporary slump during the beginning of the pandemic, with average prices falling by 0.6% between March and April.

                  By the end of the year, average property prices had risen to record levels – and continued to rise even more.

                  All of this meant that investors could make strong capital growth returns.

                  So, if you want to secure the best capital growth in the long term, consider a 2023 UK property investment.

                  Yes, it is a good time to buy a house in the UK property market. This is because rent is currently the highest it has ever been at £1,175, according to HomeLet.

                  According to Savills, the potential for long-term strong capital growth returns is also on the menu, with prices expected to rise overall by 6.2% by 2027.

                  Popular Manchester 1-Bed is Back with Free Furniture Pack Offer

                  Don’t miss out on this highly-sought after 1-bed unit type in Manchester City Centre which is back on the market due to popular demand.

                    London Aerial Image

                    Chapter 5: Investment Property for Sale London

                    Looking to start investing in London property? Ready to buy a property in London? Then our final chapter is here for you.

                    Chapter five will help you find the latest investment opportunities in London.

                    If you’re looking to invest in London and want to find the latest investment properties in London and the wider South East area, then keep reading for more information.

                    Key topics:

                    How to Build a Property Portfolio, Get Started Now!

                    Tips on how to start building your property portfolio with tools for success.

                    20 years of industry experience

                    Get the Latest Investment Property for Sale London With RWinvest

                    Here at RWinvest, we have several exciting buy-to-let properties for sale in London.

                    With prices starting from just £179,950, you can buy property in London, Luton, and South East areas, with up to 5% returns.

                    Our investment properties in London and the wider South East area include:

                    • The Hive – Revolutionary Luton investment property from £179,950.
                    • West Quay Royal Arsenal – London property investment from £390,000.
                    • Birch House – Award-winning property investment in London for £450,000.
                    • Centrum Court – Spacious investment property in London apartments for £410,000.

                    Just click the links to learn more about these excellent exclusive London property investments today.

                    Foreign Investment in the UK 2023/24

                    Based overseas? This is the perfect guide for property investors looking to buy property in the UK.

                    Download Guide

                    Off-Plan vs Completed Property

                    The ultimate guide to help you choose whether to invest in off plan or completed property in 2024.

                    Download Guide

                    Who is RWinvest?

                    Ready to make your UK property investment? Then RWinvest is the company for you.

                    With over 18 years of experience in property investment, RWInvest is one of the nation’s top property investment companies, helping newcomers and experienced investors find the best buy-to-let properties on the market.

                    Our dedicated teams have vast knowledge about the property market and how it has changed over time.

                    If you’d like to learn more about the current state of the housing market, get in touch with our sales team today.

                    With specialists able to help you every step along your property investment journey, we have some of the best investment opportunities available in the best buy-to-let hotspots like Liverpool, Manchester and London.

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                    Author

                    Reece Pape

                    Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

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                      I can honestly say they have put my mind at rest from day one answering all my questions I had , true professionals, I am not experienced in buying off plan or for a rental income but I have to say the process has been smooth from sales to Chloe in client care and now I’m handed over to the final stage for the site visits
                      I feel very relaxed and happy with how amazing the team have been. I I can’t wait now to see the end built ! Thanks 🙏

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                      I have had the pleasure of experiencing exceptional customer service from RWinvest. Adam and Michelle were remarkable and were exceedingly supportive in facilitating the acquisition of two properties in Liverpool, at "The Gateway." Their guidance was instrumental in the purchase of the properties and I express my utmost satisfaction with their assistance, and I am inclined to not only endorse but also consider any property advertised by RWinvest.

                      Narendra Rai

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                      I am very happy and satisfied with RWinvest. Their team was always responsive, supportive and friendly throughout my investment process. Thomas from RWinvest team was especially very supportive and he made sure that I have all the necessary information at the right time. He helped me with all my queries, and helped me to complete my investment process smoothly and with peace of mind.

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