London is renowned for being one of the best places to invest in property, as it is lucrative, stable and offers a strong chance of capital appreciation. While the country has faced a number of economic challenges recently, the latest data from Rightmove shows that stability is returning to the market following the General Election and we are expecting to see an uplift as we move into Q3 and the rest of 2024.
One of the biggest benefits of investing in London is its longevity – typically, property in the capital has seen consistently high yields, even when there have been challenges in the global market. London house prices remain steady and are usually much slower to fall than other regions, with the most recent House Price Index showing the city has experienced a 0.6% price increase YoY.
At Knightsbridge International, we cover properties in the most sought-after areas of London and our agents are here to help you make the right investments and maximise your return.
Why should I invest in a property in London?
London is an incredibly attractive place to live with its vast history and culture. Its property market is historically one of the strongest in the world, with the city consistently subject to outside funding.
Investing in London is typically a safe financial decision, as capital will be protected by the city’s strong property market. The predicted house price increase will also ensure capital growth for both investors and buyers alike.
In the market for buy-to-let? Rent prices in London have increased by 3.7% since 2023. As the capital offers a competitive rental market, investing in a buy-to-let property in London will generate significant additional income. With predicted increases, your initial investment could see high returns of 8.5% to 9.2% annually until 2028.
Purchasing a home to live in is also a fantastic option if you would like to invest your capital while making the most of everything the city has to offer. While you won’t earn additional revenue month-on-month, you are likely to make an impressive return on your investment when you come to sell.
Which London boroughs should I invest in?
While the entire city offers investment potential, certain areas stand out. Currently, Mayfair and Fulham are experiencing price reductions compared to previous months and neighbouring boroughs, presenting a potential opportunity for savvy investors with 2% and 1.2% decreases. It’s all about the right time and right place. As the latest market data suggests, prices are set to increase over the coming months, so investing now could help you reap the highest rewards in the future.
Chelsea, Knightsbridge and Kensington are all highly desirable and sought-after areas, so whether you are looking to purchase a property in these areas to rent out or to live in yourself, you won’t be disappointed. With so many wonderful places to eat, drink, shop and explore in these neighbourhoods, homes here are in high demand, boding well for both landlords and buyers.
Are there any risks when investing in London property?
There are always risks associated with investing in property, but the latest data suggests this summer could be the perfect time to do so.
At Knightsbridge International, we are experienced in investment opportunities in London, including buy-to-let properties. Our agents are well-equipped to help you invest smartly in some of London’s most popular and prestigious areas.
To learn how one of our agents could help you with your investment, contact our team.
