If you’re looking for UK hotspots in which to secure a property investment, London offers some excellent options. It is the centre of the UK economy yet it is one of the most divided areas in the country, with many contrasts in incomes and standards of living. With the aim of creating new communities in areas which have suffered neglect, the city is currently undergoing a number of regeneration projects. Since the announcement that the Olympic Games are to be staged in the capital city in 2012, some of its poorest areas have seen a dramatic rise in house price, proving that buyer interest is on the up.
East end borough, Tower Hamlets, has seen a rapid jump in prices (an exceptional 12,000 pounds in one month) and neighbouring areas, Stratford and Newham, have been experiencing price increases too. For those looking to get a foot on the buy-to-let ladder, racing to buy investment property, London is a wise move at present. The Olympics are already resulting in substantial investment propositions in infrastructure like transport, particularly in the east of the city. This should make the area more accessible, popular and trendy with rental tenants and buyers and will therefore push up prices – good news for those currently searching for a London property investment.
East London is set to receive a big upgrade in facilities thanks to the staging of next year’s Olympics. The area will be home to a 500 acre sporting park stretching from Hackney Marshes to the River Thames. This will include an 8000-person Olympic village, stadium, aquatic centre and various sporting complexes. London Underground’s Jubilee Line is also set to see some improvement in the form of increased capacity and there are plans for a transport hub to be created in Stratford. There will also be improvements to the Docklands Light Railway (DLR) and a new Channel Tunnel Shuttle link is to be put in place from Stratford to Kings Cross.
According to the latest figures from consultants, Knight Frank, published on Monday August 01 2011, prime London property prices soared by 0.7% in July – a record high – with rental prices in the same sector rising by 0.3% in July. Rents are now 1% higher than the last peak, which occurred back in March 2008 – more good news for those looking to purchase investment properties. London is definitely on the turn.
The strongest markets for investment property in London lie in Chelsea and Mayfair. These areas have seen values rise by 7.7% and 7.2% respectively in the last six months. Another area seeing investor interest is Belgravia, where its lettings market has seen a 1.8% rise in values over the last three months plus the highest levels of demand.