Why Investing in London Property Can Still be Worthwhile

An article we wrote in August 2012 on the London property market... were we right so far??


Despite average house prices in central London rising above the pre-great recession peak levels, there are still reasons to remain optimistic about finding profitable investments in Central London. The gloomy economic outlook has taken its toll on nationwide property prices with most expectations predicting declining prices for the next 1 or 2 years. However, London property seems to be defying to trend as although house price growth has slowed down in 2012, prices have still increased 5% over 12 months. More homeowners expect London property prices to rise than to fall in the coming year despite. This suggests that the London market may be more resilient to economic fluctuations than other regions. In fact, because of the unreliability of the Euro and the uncertainty over global currencies, London property seems to have become a long-term safe haven alongside the Swiss franc and gold.

When looking for where in London to invest, it is important to not be in a hurry to avoid making poor decisions. It is essential to research the current market trends to see if any regions are particularly stable or developing (and therefore likely to increase in value). Regions such as Chelsea, Knightsbridge and Kensington are prime and historically expensive locations, and as such are unlikely to decline in value in the midst of economic uncertainty. Paddington, Notting Hill and Kings Cross areas have exciting growth potential with great links to airports and the city, and as such can be potentially profitable long-term investments. Therefore, amidst declining confidence and demand for property, investing in property in London can still be worthwhile.