Investing in Property
Property Investments in London
Property investment in London remains a top choice for those seeking high returns. The UK’s capital city has a vast financial hub full of industry, with London also ranking high for tourism and culture, making it one of the most popular places to live and work in the UK.
London is one of the world’s major international hubs and this makes it an ideal place for property investment opportunities, and one that’s guaranteed to stay relevant, due to the rising property values in the area.
Housing in London is always in demand, as the city is well known for its high property prices, with the market only set to rise in the future. The city consists of 32 different boroughs, all of which have different budgets and property types available, suitable for both families and young professionals alike.
Average house prices in London are the highest in the country, buoyed by both the local market and foreign investors. It’s often viewed as a safe haven during stock market downturns and uncertainty, which bolsters prices in the capital, which is none more so evident than following the market crash of 2008. Historically, whilst there are times of correction in the property market, London has quickly bounced back and has consistently exceeded the previous price peak.
Because of this, London is clearly a compelling place to invest in property, as the city offers excellent employment opportunities, a wealth of entertainment and cultural hotspots and a variety of different property types.
If you're interested in learning more about how you can invest in London property, Brite Developments is here to guide you through the process.
London Property Investment: Why Invest in the UK’s Capital?
London is a fantastic choice for investment, no matter which area you choose to invest in. Each borough has its own unique character, with lucrative opportunities available for savvy property investors.
Some of the main reasons to invest in the capital include:
Fantastic talent and employment opportunities - Being the capital, London has a huge pool of talented and dedicated individuals, with a workforce of more than 4 million people. The city is a hub of activity, containing headquarters for many different businesses and organisations across a huge variety of workplace sectors.
Demand for property - Being such a densely populated area, there is a huge demand for affordable property within London, particularly for first-time buyers. As the cost of properties in the city is much higher than in other UK cities, this creates a gap in the market for properties with a more affordable price point, just waiting to be taken advantage of.
Accessibility - London is naturally one of the most accessible cities in the world, with a huge underground network that’s constantly being improved, such as the creation of the new Elizabeth line in May 2022. The city has 5 airports and several train stations, with railway lines going across the UK as well as the Eurostar service to continental Europe. A new high-speed railway line, HS2, is currently being built, providing fast transport links to the north.
Investment - As the capital, London is a hub of investment, with many innovative directives being implemented in the city. These include the Patent Box Scheme and the Enterprise Investment Scheme.
How Is London's Property Market Performing?
London’s property market has been growing at an exponential rate over the last few decades, with the average property prices rising hugely, with no sign of slowing down. Its strong performance is fuelled by a disparity between supply and demand, further exacerbated by the recent pandemic, investment, employment opportunities, and steady migration to the city, whether that’s from people looking for employment or students attending one of the many universities in London.
The cost of living crisis has created some fear that house prices could drop, however, property prices have still continued to rise despite the current financial issues the country finds itself in, with over £6,000 being added to the average house price in London in July 2022. If house prices do drop, this could be a good time to invest whilst prices are cheaper, so that you can capitalise on the expected rising house prices once the crisis is over
House prices will differ depending on which part of London you're in, with Central London and West London property prices tending to be more expensive than those in East London, South London and North London.
The London Rental Market
The London housing market report is updated every few months and provides important information about housing prices and the general property market in the city, so it’s well worth keeping up with if you’re looking for an investment property in London.
During the pandemic, annual rents fell - however, they rose to a high of 15.8% during the summer of 2022, showing that there is a great deal of potential if you're looking to purchase a rental property, providing a fantastic income for buy-to-let investors.
Rental demand for private properties has risen dramatically, with demand only set to increase in the near future. More residential properties are needed based on the influx of migration to the capital, giving another incentive to invest in rental property in London.
Increased rents mean that more and more people are now looking to house share in HMOs (houses in multiple occupation), with separate tenancies required for each individual living in a shared house. A property is classed as an HMO if 3 or more individual tenants reside in the building, sharing toilet, bathroom or kitchen facilities with each other.
The London Housing Market
Rental investments aren’t the only part of the property market in the capital set to rise, with the average asking price for houses increasing in July 2022 in every borough except the City of London. The City of London is one of the key financial districts in London, alongside Canary Wharf, and so naturally has less of a housing demand as most workers commute into the area, instead of living there.
Whilst the cost of living crisis has had a slight impact on house prices in London, the demand for housing has far outstripped such financial issues. Potential property investors shouldn't be concerned, as property price predictions are still rather high.
Whilst new home completions dropped during the pandemic, they've now returned to pre-pandemic levels. Demand for help-to-buy and build-to-rent schemes has also increased, showing that there are no signs of stopping the housing market, with housing prices set to rise even further in the coming months.
Inflation and the consumer price index have risen sharply in the first half of the year - however, the latter has since fallen from 9.4% in June 2022 to 8.8% in July, further down to 8.6% in August 2022. This fall in cost shows a positive upturn for the housing market, indicating a potential drop in inflation.
Mortgage interest rates have also risen. Most recently, this is due to the pound dropping against the dollar and the announcement of the UK government's mini-budget. The impact of both on the UK property market is worth discussing with our team who can help to identify the best investment opportunities.
Our Development Properties in London
We have several development properties in London at the moment, with more set to be announced in the coming months. If you’re interested in working with us, make sure you get in touch to see how we can help you!
The Laundry is an East London development that has been carefully designed to the highest standards, being both modern and stylish. It’s located in the iconic area of London Fields in Hackney, which is itself a very trendy area to live in.
This creative community also has the beauty of nature on its doorstep, as Regent’s Canal and London Fields are located within walking distance, so you’ll always have green spaces to explore.
The Laundry is contained within Hackney, an inner borough of London. Over the past decade or so, Hackney has become very up-and-coming, featuring an array of trendy restaurants, cool bars and independent shops that are perfect for any young professional.
Hackney is considered to be a hub for creative types, encompassing several districts, such as London Fields, Shoreditch, Dalston, Hoxton and Stoke Newington. There are many treasures left to be discovered in the borough, all on your doorstep if you choose to invest in The Laundry.
Street artist Banksy has created several artworks in the borough, with the area also containing several museums, such as the HMS Belfast and the National Trust property, Sutton House. London Fields is also a short trip away from Brick Lane, known for its fantastic array of curries, ensuring you’ll never be short of a good meal.
The Haydon is another top development located in Aldgate, which is technically East London and is well connected for transport. This central location in Zone 2 gives the best of both worlds, being close enough to the city of London itself, whilst still retaining its own sense of character away from the hustle and bustle.
This block features 87 luxury apartments and is a unique contemporary landmark, beautifully hidden in its own private oasis. It's located within the 'square mile', featuring unrivalled transport links, with Aldgate Underground Station and Fenchurch Street Station just a short walk away. Even better is the fact that the new Elizabeth Line can take you to Heathrow Airport from nearby Liverpool Street Station in under 45 minutes, meaning you'll never have to worry about missing a flight again.making for a fantastic romantic gift.
The Haydon is located in the area of Aldgate, in the borough of Tower Hamlets. It’s one of the oldest areas of London, close enough to the centre to be able to visit the capital easily, whilst also retaining its own subtle charm. Whilst the borough itself came into being in 1965, the name and area date back to the medieval period, featuring lots of interesting historical and cultural landmarks.
Some of the more popular attractions in Tower Hamlets include the Tower of London, Tower Bridge and Victoria Parks, one of the most important and historical parks in the city of London.
London is famous for its markets, with Tower Hamlets being no exception to the rule.. The Petticoat Lane Market is famous for its clothing and fashion, providing a different sort of style from the clothing normally found on the high street. The Columbia Road Flower Market is perfect for those wanting to add more nature to their lives, with the beautiful flowers sold here.
Upcoming London Property Investment Opportunities
The Haydon and The Laundry are just two of the current developments we have available in London, with more real estate investment opportunities set to go live in the coming months. If you are interested in one of these developments, contact Brite Developments and we’ll go through the investment process with you.
Why Should You Choose Brite Developments for Your Property Investment Needs?
Brite Developments is a modern and agile property development company that has been in the business for over 30 years. We have a wealth of experience across all stages of the development process, giving investors the funding and tools needed to fulfil their real estate investment goals.
We’re part of the larger Brite Advisory Group, including pension experts Brite Advisors. We’ve built up a huge network of connections and knowledge within the financial world, having worked through several different economic cycles during our lifespan.
We can help property investors through the planning process, providing funding before work on your development starts. We're also able to help you with a range of development exit solutions, including forward funding, forward purchase and open market sales, advising you every step of the way.
So, whether you're a property developer, a buyer, a real estate investor or you're just interested in finding out more about how to develop a property portfolio, contact Brite Developments and we'll make your investment journey as hassle-free as possible.