London has always provided lucrative investment opportunities for overseas investors. With Brexit out of the way and a return to normal life after the COVID-19 pandemic, there are even more reasons to invest in the London property market. According to statistics, the demand for rental growth is set to increase by 26 per cent by 2026. However, like investing in any real estate, it’s crucial to be on top of current trends.
So, what are the top ten reasons to buy property if you are an investor living outside the UK? With the uncertainty caused by events in Ukraine, increased oil prices, and high inflation, is the London property market still a good place to invest? Please read on to find the answer to these questions and more.
Top Ten Reasons to Buy Property in London
If you are an international investor looking for excellent investment returns, there are many reasons to consider buying property in London. Here are some of the top ten reasons why investing in the London housing market could be lucrative.
1. Continuous demand for rental property
London is one of the most sought-after cities by young professionals. And with London being one of the most expensive cities in the UK to buy property, the rental market is booming.
Additionally, the FT Adviser reported that the number of rental properties in the capital dropped by 38 per cent between July 2021 and July 2022. However, at the same time, enquires to rent skyrocketed by 60 per cent during the same period.
2. Commercial and residential properties prices are set to increase
Despite financial turmoil in the world and the threat of higher interest rates, London property values look set to continue growing. The Evening Standard reported that London will outperform the rest of the country with a predicted 5 per cent growth in house prices in 2024 and up to 15 per cent by 2026.
3. Luxury housing developments
Regenerated areas in London provide fantastic opportunities for non-UK residents to buy luxury homes. For example, the Docklands, Rotherhithe and Shad Thames have some of the most luxurious apartments in the city. As London continues to grow, so will its luxury real estate market.
4. Excellent employment growth prospects
Despite Brexit and the boom in remote working during the pandemic, large financial institutions and multinationals have their headquarters in London. According to some reports, job vacancies in London have surged to more than double that of pre-pandemic levels. Additionally, remote workers are returning to offices.
5. Buying property in London is financially secure
London always outperforms other cities in the UK, whatever the market conditions. This means investing in the London property market is always a sure investment. Due to the size of the city, options for investments are unrivalled compared to the rest of the country.
6. Excellent infrastructure and global connections
London is one of the best-connected cities on the planet. There are six major airports in London and the surrounding area, including the international hubs of Heathrow and Gatwick. Plus, investment in infrastructure like the new Elizabeth Line have positively impacted property prices and boosted economic growth.
7. Regeneration is transforming the London property market
Regeneration in many former industrial areas of London has breathed new life into once derelict neighbourhoods. Regeneration creates jobs, benefits the local community and increases property values. This, in turn, increases the demand for houses.
8. London properties have excellent returns on investments
With rent prices in London ranging from £1,200 to £2,800, investment properties have the potential for tremendous yields. Despite London being the most expensive city in the UK, it’s common for investors to get between 5 and 7 per cent rental yields.
9. London has a stellar investment reputation
London has an excellent reputation as a safe place to buy investment properties. The city has always attracted domestic and foreign investors due to its robust economy and financial stability. Additionally, people from all over the world want to enjoy its cultural richness and benefit from employment opportunities. Therefore, London will continue to appeal to a global audience.
10. London has a transparent property market for overseas investors
Overseas buyers require transparency during the investment process to make informed decisions before any type of property purchase. Knowing that the investment is a good deal with excellent returns is crucial. Regarding investment transparency, London was rated in the top spot in Jones Lang Lasalle’s (JLL) 2020 transparency index.
Buying Property in London — Call Hastings International
Do you live outside the United Kingdom and want to buy an investment property in London? Every year, our estate agent team helps thousands of foreign buyers find stable and lucrative investment opportunities. So, please get in touch so we can find the right property for you.