London, being the global city which has been expanding and growing is one of the first choices for employment and residence whenever one moves to England. Being the capital as well one of the most diverse cities in the world, both culturally and individually, it is home to more than 300 languages. People from all over are attracted towards its rich history, art, commerce, education and finance. A favorite tourist destination with a lot of world heritage sites, the locals as well are keen on putting their roots in London and absorb the history and modernity.
For new settlers, house prices in London are expected to rise by 5% due to the new government and elections in progress, and are expected to rise by 30% in the next five years. For sellers this is good news whereas for individuals who are seeking out to buy, it’s not favorable news. Be it apartments or houses in the suburbs, all are expected to rise. For normally-priced houses and flats, prices will rise 5% each year in 2016, 2017 and 2018, before increasing to 6% in 2019, whereas prices in luxury London will pick up to 6% in 2017, ahead of all other regions as well as the rest of the capital.
An increase in the population and also in the employment are two factors which also have paved way for increasing house prices in London. The Mayor of London has predicted that by the year 2030, house prices are set to increase due to increasing population which the city is not able to compete with. Oxford Economics and leading economists warned that affordability problems in the capital would intensify and step up even further if the expected increase in demand for housing coincided with a widening of the gap between rich and poor. This makes affordability of houses or residency for the middle class and the lower class even difficult.
Since jobs are expected to grow which would make individuals and families migrate towards the capital, London housing is seeing even more difficulty than ever to accommodate the present and the future residents of the capital. Development of the city is in the process with the city growing by developing infrastructure towards the suburbs. This would take time and with government changing every 5 years, Londoners are doubtful of fast progress.
Even though individuals who cannot afford to purchase property seek towards renting, which may be inexpensive as compared to buying but factors such as evicting and landlord tenants problems cause individuals to steer clear from that path. Also on the basic salary, even renting out is a bit expensive for many.
With all this in mind, if you are looking for a property or home in London, it is important to do your homework on the history of prices in the area as well as the street. It is particularly good to buy a house where there are up and coming developments planned as this will increase the value of the property for the future. On the flip side, if the surrounding areas are decreasing in reputation, the value of the house may also decrease.
Our agents have the experience and knowledge of most of London and will be able to advise on the areas you are looking for. Contact us today if you need some advise or help with buying a home in London or looking to invest in a property.