A Comprehensive Look At Real Estate Investment State Of Affairs In London

The leading UK market analysts expect the cost of housing in London will increase by more than 20% by 2020. The latest data of the Land Registry shows that the constantly increasing average cost of housing in London has crossed the threshold of half a million pounds, and currently stands at £514,097. The rise in prices in the city is estimated at the level of 12.4% compared to the previous year, which is significantly higher than the level of price increases in most other regions of the country; importantly, the price for the services of conveyancing solicitors has increased quite similarly – roughly by 10%.

The most expensive areas, of course, remain to be prestigious and well-known of Kensington, Chelsea and Westminster. However, the rise in prices in Kensington and Chelsea, according to recent data was estimated at just 3.6%, while prices in Westminster has increased by only 6.1% compared to last year – a positive, but a slight increase in comparison with other areas of London. The greatest increase in property value over the last year noted in the areas of Barking and Dagenham (15.3%), Hillington (15.2%) and Enfield (13.4%).

Thus, considering the prospect of buying real estate in London for the purpose of investment, prospective buyers should explore developing areas, which can often have a greater potential than the well-known districts of the capital. It is worth paying attention to the regeneration zone areas – Nine Elms, White City, King’s Cross, and many other places, where the value of property has not yet reached its maximum price. Ambitious projects to revive and transform these areas significantly raise the cost of housing in them, and makes them more attractive to buyers, and the presence of two stations will benefit suburbs Ealing and Acton.

The steady increase in property values can be associated with a number of different factors. Availability of mortgage lending continues to attract more and more new customers. Another fact that instils confidence when buying new homes is the parliamentary elections that took place in mid 2015, by the results of which it became clear that an addition to mansion tax on expensive real estate is not going to be imposed.

Growth in the future will also largely depend on the number of proposals of new homes on the market. In recent years, the rate of construction of new facilities significantly lagged behind the required amount of property, which the city must ensure the ever-increasing population. Territorial capital opportunities for the construction of new facilities are limited – in London simply do not have enough space for the rapid construction of new facilities in accordance with the growing demand, and a permit for the construction of new homes can take years, so significant changes in this area are not expected.

One of the most significant factors contributing to the increase in prices, as is the fact that the inhabitants of the so-called ‘family’ areas such as Clapham and Fulham, are less and less willing to move to other counties of England. A dynamically developing London’s economy, increasing the cost of the daily commute from the suburbs to and from work, and as a result, significantly increases desire to stay in London, leads to the fact that families with young children no longer want to move to the suburbs, as it was earlier.

An overview of prestigious real estate options in London

A statistical analysis of the demand for real estate in the UK shows that the very first rise of the cost of apartments in London accounts for the mid eighties. These were the times when property in England was acquired by eminent Arab families, among them, the famous millionaire Al-Fayed. The period of the late nineties until 2004 refers to the Russian investment flows. During this period natives of Russia acquired real estate in huge quantities and thus raised the its price to the soaring heights. Today the market in London is equally divided between domestic companies and individuals, and international investors, and property in London, one of the most prestigious and accessible cities in terms of real estate acquisition, remains to be a desired pulm for many.

During the last twenty years, the cost of houses and apartments in the most prestigious areas of London increased by almost seven times. The property prices in London are growing annually at 3-10% rate, especially the prices for such areas as Mayfair, Belgravia, Knightsbridge, Kensington and Chelsea. In the monetary value grow the services of conveyance solicitors, allowing the deal to happen. The most affordable are considered to be one-bedroom apartments. Property prices in London have increased so greatly that nobody is surprised by the 900,000 pounds cost of one bedroom apartment. And the average cost of presentable two-bedroom apartments of about 124 square meters is currently balancing in the range of 1.5 – 2ml. pounds. Small houses in London in Victorian style will cost from $10 million pounds, townhouses are cheaper 2.9ml. pounds. Of course, these kinds of property are rarely purchased for investment purposes, but as a demonstration of the prestige and status of the owner.

A cheaper, and therefore less prestigious properties are located in North London. The first option to pay attention are the areas of Regents Park and Hampstead – prices in these areas are about 20% lower than for similar objects in the center of London. Charming East London may also be a reasonable direction to take if you are looking to spend a great amount of money, especially the areas of Kew Gardens and Richmond. Most of the property concentrated in these areas has a rich aristocratic history. In this part of London the houses are frequently bought by world-famous celebrities and businessmen.

The most controversial in terms of prestige is considered to be Docklands area. Developers and investors are engaged in its large-scale buildings, are struggling to give it a prestigious status. This course is primarily designed for foreign buyers, since the indigenous British refuse to recognise the elite area. In this regard, realtors, have a reason to believe that real estate is undervalued in Docklands area. And in the futures of growth in property prices in this area of London is approximately 25-30%.

The cost of apartments in London also depends on the proximity of transport hubs. The railway network consists of London Underground, National Rail and the surface trains. The transport system is integrated into a single network, and in fact, it does not matter, next to which station your apartment is located – the proximity to larger transportation hubs is a huge advantage already. All the trains run well on schedule, is equally comfortable and paid single tickets.