
The time to buy is now: as inflation rises and supply declines, demand for Prime Central London properties increases.
House Price Growth
House prices are expected to rise as inflation will peak in Q4 of 2022 at 10%. Looking back to the last price peak in August of 2015, prices in Prime Central London are 15.3% lower indicating an opportunity for further growth. The Prime Central London market, beginning to grow after years of political uncertainty and the pandemic, is greatly benefitting from international cash buyers, further accelerating the process of recovery and making the market safer and more profitable.
Future Projections
The prime markets are less susceptible to global economic changes meaning that by purchasing property in the early months of summer ROI will be greater as the year progresses. That said with scarce supply there is still a little-to-no chance of house prices plummeting, if anything it will only slow down making the current London market still one of the safest markets to invest in. Currently, in the UK, we see a nationwide economic growth of 3% until its expected descent in the early months of 2023 as inflation begins to decline.
Landlords
Aside from the buyers market, the rental market is experiencing a 57% rise in new prospective tenants which is higher than its 5-year average in April. As seen in PCL, rental values are 9% higher than before the pandemic and will increase by 17.1% over the next 5 years.
Despite global pressure on the economy, the London market stands as one of the most profitable and safest to invest in. For assistance in purchasing your London property contact us at Ayana Properties.
Written by Shyon Afshar,
Student at University of Oregon.