There can be absolutely no doubt that the London property market is one of the shining lights of the UK economy, and offers some of the best opportunities for investment seen anywhere in the world thanks to strong demand - particularly in the private rented sector. The one barrier to this, of course, has been the fact that the entry price point for buy-to-let purchasers has often been far too high to risk. However, this could be about to end, with predictions for this year stating that property price growth in the capital will start to slow.
This could present a window to those who have seen escalating prices far exceeding the rate of increase in the rest of the nation. It has often raised fears of a property bubble, but with values starting to find their level at last after years of breakneck acceleration, it could now be the case that London is the place to buy. This is especially true given recent predictions that the UK is becoming much more of a continental-style market, with Brits moving away from the traditional desire to buy their own property in favour of long-term renting.
And while predictions from London Central Portfolio have indicated that 2014 could be one of the slowest years of increases in London at any time for the past five years, the important thing is that prices are still rising, just at a far more sustainable level. In 2013, prices went up by 12.5 per cent in the capital. However, the company has forecast that this year will see them creeping up by just 5.5 per cent.
The slowing in the price of properties is something that Knight Frank agrees on, with the consultancy suggesting that the next year will see prices heading upwards by just 4.7 per cent. Part of the reason for this partial slowing is the fact, many believe, that there will be a degree of uncertainty leading up to the 2015 general election, with many people hedging their bets until the outcome becomes clear.
Thinking of investing into property in London? Check out our interactive map of the top 10 undervalued places to invest in London
- Wednesday 29 January 2014