For a long, long time, London has been the place to invest in property in the UK. As many areas of London have been regenerated and investors have snapped up properties in up-and-coming location, more and more people priced out of the market. This has resulted in London becoming a renter’s city, with high rental yields that have attracted investors.
However, the London property market is starting to shift. While property here as always been priced above the rest of the country, monthly rents are falling and experts fear that prices could, too.
Rental Yields are Falling
As anyone who lives in London will tell you, the city exists in its own property bubble, quite separate from the rest of the UK. For a long time, this has meant that rents in London have been far higher than many other areas of the country, but not anymore.
While rental prices are continuing to climb across the majority of the country, London rents have decreased an average of 12.3% since 2012. Property prices, on the other hand, have continued to grow since the recession, with London homes now worth on average 80% more than they were in 2007. This may mean that investors decide to sell properties and cash in on their investments.
Brexit Could See Prices Fall
Since the result of the referendum was announced in 2016, experts have been predicting how leaving the EU could impact the economy. One of the greatest areas of speculation surrounding the effects of Brexit has been the UK’s housing market.
As stated in The Standard, experts have stated that over the next five years, property prices in London could fall behind the rest of the country. London property prices are forecast to increase by only 7.1%, which will be half that of the rest of the UK.
As such, investors could stand to make more by selling London property now and reinvesting elsewhere in the UK – property prices in the northwest are set to increase at double the rate of London over the next few years and could provide an excellent return on investment.
Time to Sell?
Falling rental prices and the uncertainty of Brexit are beginning to have an impact on London’s property market, with house prices predicted to rise slowly. As such, whether you are an investor looking to sell property or simply invest, now may be the perfect time to sell London property.