Whilst property markets around Europe are flagging hopelessly, the property market in London cannot be described as anything but buoyant. Despite the financial crisis that looms over much of the Western world, the appetite for London property shown by the super-rich has shown no signs of subsiding. Whether you’re looking for a crash pad in the UK’s capital city, or just something to invest a sum of money in, London properties are appreciating in value whilst every other housing market in Europe continues to list.
What’s caused buoyancy?
A range of different factors have spurred on the London property market – including the London 2012 Olympic games. London is a place that’s extremely popular with tourists – the tourism industry has created thousands of jobs in the city – with many more popping up on a regular basis.
London is one of the biggest cities in the world, and it also boasts an affluent financial sector, which again plays host to thousands of jobs. As the UK gradually emerges from a state of recession the influx of people to the city of London is likely to increase further – thus sending property prices up even more.
Whilst the rest of Europe and North America is in the depths of recession, the economic conditions in London are much better than those experienced elsewhere. Because demand for property in London is so high – and remains high, the cost of living there and buying London property is gradually creeping up. If you need to see an example of a place that’s bucking the financial trend at present – London is a great case study to examine.
One thing to remember about London is that most companies in operation there offer a special “London weighting” pay rate – which takes into account the fact that the cost of living in London is significantly higher than elsewhere in the UK. London weighting ensures that employees have enough money to live in and around London.
Everyone’s a winner
If you’re looking to buy property in London there are a number of different reasons why you really can’t lose. For different people the reasons will vary –here are some of the biggest reasons why London properties will only realistically appreciate in value:
- Demand for housing in London is increasing – therefore prices will increase as demand goes up. It’s simple economics really!
- There is a lot to see and do in London – there are lots of great museums, musicals, sights and exhibitions. London is a fantastic city full of things to keep you occupied.
- Job prospects are good in London, whether you have a first class degree in your chosen discipline, or you have no qualifications at all – if you’re going to find work anywhere, the chances are that it will be in London!
Can’t afford London properties? Head to the suburbs!
If buying a London property just isn’t going to be possible for you, you may well want to look into renting instead. Although monthly rents are often similar to the cost of a monthly mortgage repayment, they don’t require a large deposit to be put down. If you’ve got a great job lined up then you can grab somewhere to rent in London, and then look to save for a deposit in order to buy your own London properties at some point in the future. There’s an awful lot of choice out there when it comes to renting – so make sure you have a good look around.
A lot of people who can’t afford London property prices tend to end up in the suburbs. This is a wise move to make in a lot of cases because living costs (especially property costs) are much less outside of central London. The good thing about living in the suburbs is that there are usually strong transport links directly into central London – which means that you can still work in central London and enjoy the delights on offer there, but you won’t have to pay central London house prices.
Investing in London properties
Whether you want to move into a London property tomorrow – or you just want to tie up some cash in a relatively safe investment, properly in London is definitely something that you should look into. Obviously you’ll need a relatively large sum of money in order to be able to invest in property in London, but it’ll be money well spent if you do. Remember a lot of property in the capital isn’t monstrous – even modest flats and bedsits in prime locations can go for hundreds of thousands – or sometimes even millions of pounds.
Selecting property to buy in London can be a mammoth task because of the sheer size of the city. The more fashionable districts are where the majority of investors look to snap up property though –around Buckingham Palace – and of course in Chelsea and Kensington. There are lots of other nice places in London too – it’s up to you to find the best London property for you, that fits your budget.
All in all, property in London is seen as a safe investment by lots of experts. Demand for London property is showing no signs of dropping off – which means that prices are creeping up all of the time. London is a city that is fast being taken over by the “super rich” – because so much money is flowing into the capital, if you can add a few London properties to your portfolio, the chances are that they will be worth exponentially more in a relatively short period of time.
The recent recession has been a living nightmare for a lot of home owners who have found themselves living in properties that are now worth considerably less than they were when they purchased them. There’s no such thing as a housing market that is totally safe, where prices will never ever dip, but London properties are perhaps the closest things you’ll get to a safe investment.
United Kingdom Sotheby’s International Realty As a brand have been in the UK for many years and are experts in property investment and advice