While the London property market may be in a certain state of flux due to Brexit and stamp duty, there are still some things that are certain. It is the world’s capital city with amazing historical attractions, world-renowned educational institutions and thriving business opportunities. For these reasons, it is likely to always need good private rental properties for the professionals and students looking to live and work here. In fact, PwC reports that 60% of the UK population will be renting by 2025 and in need of property to rent in London.
This uncertainty has brought some welcome news for property investors looking to build their portfolios, namely that there are some fantastic properties in prime locations that are available for sale as a reduced price. Figures recently released by Zoopla show a third of London properties have had their listing prices reduced as of April, and these reductions have been mapped across the capital, per borough.
A word of caution though, Zoopla’s figures show that in December 2017, almost 40% of properties were selling at a lower rate than expected and just five months later, only a third are selling at discounted rates so this shows that the prices are already starting to recover. If you are looking to add to your portfolio, it would be wise to buy now before the prices climb. This is now the time to seriously consider investing further – prices are subdued and rental market is very strong currently.
Kensington and Chelsea is top of the list with an average reduction in selling price of 7.8%. This equates to an average £113,491 discount on the asking price. Few would be able to resist a price drop of this nature, especially for such a desirable area that can boast Royals and billionaires in residence, stunning parks and gardens, the hub of London museums and shops including Harrods and Harvey Nichols. For UK professionals and those moving here from abroad, the area has huge appeal and a rental property here is unlikely to have void periods.
Westminster follows with an average reduction in selling price of 7.61% which equates to £117,430 off the original average asking price. Again, this is an astonishingly good deal for the area where Westminster Abbey, Buckingham Palace and the Houses of Parliament and the House of Lords can be found; not to mention theatres, museums, shops and the University of Westminster (Vivienne Westwood is a notable alumni). It is an area very popular with tenants and that is unlikely to change.
Hammersmith and Fulham are experiencing a 7.41% discount in average selling price and that equates to a drop of £71,282. As a thriving commercial hub and home to many media companies there is no shortage of professionals looking to live close by and experience the cafe culture of the riverside at weekends.
Camden too is an area of thriving shopping and nightlife, close to historic Bloomsbury and Kings Cross and as such has always seen elevated property prices. The latest Zoopla findings however, show a drop of 6.99% equating to a £76,145 average drop in prices which will be good news for any investor who has set their sights on Camden.
Lambeth and Ealing are currently seeing drops of 6.8% and 6.85% respectively which means £60-£63K off the original asking price. Between the film studios in Ealing or the nightlife of Brixton both areas have an undeniable draw for tenants and it looks as though these highly sought-after areas are currently offering good deals for buyers. While equally desirable areas such as Wandsworth (home to Battersea) and scenic Richmond-upon-Thames are also seeing drops of 6.72% and 6.56% respectively.
All of this is resulting in some great deals and opportunities for property investors. It is important to keep in mind however, that the property market is reacting to the vagaries of Brexit and that if you are considering where to buy based on the biggest drops in price, you should also balance this by considering which of these areas will continue to have the greatest appeal to tenants. If you would like further advice from a team of lettings experts on what areas are most popular with tenants in order to future proof your property portfolio then get in touch with Lettings Director Marc von Grundherr today.
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