A Look at London’s Property Market in 2020

Toy house and calculator on the table

Following on from an era of uncertainty caused by the Referendum result in 2016, London’s property market has witnessed somewhat of a positive resurgence in 2020. We aren’t out of the Brexit gate just yet, as there is still a lot to be decided, with the country in a cool-off period until December, but the conclusive recent election result and the overall break from the EU seems to have at least settled the nerves of property investors and homebuyers in the capital.

However, this doesn’t mean that London’s property offerings are the best. In fact, there are plenty of areas throughout the UK that have much better statistics, such as rental yield averages and long term capital appreciation potential. For more information, take a look at this short guide, detailing some of the benefits to London’s property market if you’re an investor looking to buy property in the area, and some of the other top spots in the UK currently.

The Benefits of Investing in London Property

Nicknamed the ‘Boris Boost’ in the press, house prices surged at the beginning of the year, raising by upwards of 2.3%. With London the most affected area in the country, this was undoubtedly good news for those owning property in the capital, who have watched prices stagnate there for quite some time.

London’s property market benefits from the large tourism numbers (by far the biggest in the UK, and among the biggest of any city in Europe), overseas workers, and also international investors that have a big interest in the city. With an abundance of luxury properties on offer, those that have the right level of capital can find an excellent long-term asset that will be a brilliant backbone to any portfolio. In their guide to the massive capital city, property investment company RWinvest recommends considering areas such as “Ilford, Romford, Barking, Dagenham, Hayes, Harlington and Thameshead” if you want to invest in London, as these spots offer the best rental yield percentages. They also offer up a comparison between Northern and Southern investments…

Other Popular Areas

London’s influence and draw are undeniable, but it’s certainly not the current market leader in terms of property investment. Not only are house prices and rent costs extremely high, making it unfeasible for both investors with lesser capital and also young people and workers wanting to live and work there (which is why so many people and small businesses are moving northwards), but for investors wanting to see a sharp increase in their investment’s value, areas in the north have better-projected capital appreciation. Liverpool serves as a good comparison:

Liverpool’s property market is one of the best in the UK at the moment, and the city is experiencing huge amounts of regeneration. Not only does it have a bunch of postcodes in the top 25 for rental yield according to TotallyMoney’s buy to let yield map for 2020, but its L1 postcode is also the only in the country to top a 10% average. This is a brilliant incentive for those that want to make a consistent secondary income.