London is one of the world’s most complex and cosmopolitan cities so it’s only natural that the capital’s property market changes all the time...
On the up: The number of people leaving London increases
One of the things currently in flux is the demographic – with people in their early 30s leaving London at a greater rate. A report from Resolution Foundation – a leading think tank - found approximately 35,000 people in their 30s left London in 2016, compared to half that number in 2009. In fact, the Resolution Foundation discovered the number of 15-39 year olds and 40-74 year olds living in London has also been on a downward trend since 2009, with high housing costs and weak earnings growth cited as the driving forces behind the exodus.
Downwards trend: London house price growth decreases
While migration away from the capital is on the up, house price growth in on the way down. The latest UK Cities House Price Index from the property research firm Hometrack revealed house price growth in London has slowed to a nine-year low, at an annual rate of growth of just 0.4%. Reading the report in more detail, it’s clear certain neighbourhoods are propping up the capital’s market, with prices falling in more than 40% of London’s boroughs. Despite a decreasing trend, Hometrack revealed that the average home in London is worth £491,200 – much higher than the average cost of a property elsewhere in the UK.
Investment hotspot: Hounslow is the shining star
Landlords chasing the best yields and hoping for price appreciation may feel they have exhausted the whole of London but one borough features in the Top 10 of UK buy-to-let hotspots. Hounslow is the capital’s only entry in a list of 12 investment tips offs, as reported by Direct Line for Business. The company analysed average rental yields across UK authorities to find those that performed best between 2015-2017. Yields in Hounslow were found to be 4.9% (contrasted against a UK average of 3.7%*).
London property snapshot:
- Prime Central London buyers are swapping turnkey luxury properties for ‘doer-uppers’ so they can add value in a volatile market via improvement
- 53% of respondents taking part in the Gulf News’ ‘Spring London Development Barometer’ thought Brexit would lead to either no change or increased levels of international investment in London
- 17 years is the length of time a typical single first-time buyer in London will have to save to raise enough cash for a 15% deposit
- Rental properties in EC4Y in Westminster rent the fastest in London, snapped up in an average of just 20 days.
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