New-build properties have recently emerged as a compelling investment opportunity. Their energy-efficient designs, mandated by modern building regulations, can lead to substantial long-term savings. Alongside strong demand and capital appreciation potential, new builds offer a promising investment prospect.
According to recent data from the Land Registry, the average London property price was £525,586 in September 2024 – substantially higher than the UK average of £291,828.
However, this does not necessarily mean that property investment in the area is entirely impossible.
Despite the high cost, investing in new-build buy-to-let property in London can potentially offer solid long-term growth and stability compared to traditional properties in the area.
The capital’s vibrant rental market consistently experiences high demand for quality apartments. New builds, with their modern features and amenities, are particularly attractive to tenants, potentially leading to higher rental yields than older property for sale in London.
Thanks to the high demand from tenants, rents are some of the highest in the UK in London, meaning you can earn more rental income. Homelet indicates the current average rent in London is £1,999, higher than the national average of £1,213.
Constructed with the latest building regulations in mind, newly built apartments are designed to be energy-efficient. This translates to lower utility bills for your tenants, making your property even more attractive and potentially leading to lower maintenance costs for you in the long run.
New builds boast modern layouts and sleek finishes and often come equipped with desirable amenities like on-site gyms, co-working spaces, or communal gardens. This modern living experience can command premium rents compared to older properties.