Truths & Myths of the London Property Market
London has experienced a slowdown in property price growth and rental movements in the past 2 years. How bad is Brexit’s effect on the capital city?
Truth:
The UK population is still expanding. ONS’ latest data (Aug 2019) reveals that London has the highest population growth in the UK, with the country’s top 4 fastest-growing local authorities.
The UK’s population in mid-2018 has hit 66.4 million. England leads the charge with the highest growth in UK’s constituent countries whilst London tops all capital cities in the country. Source: ONS, Population UK, UK Population 2019
Truth:
Migration has been the greatest driver of the UK’s population growth since 1998 with London having the largest number of migrants (38%), especially non-EU migrants. In the last decade, London’s job creation rate outstripped its population growth, with 1 in 3 new jobs created in the capital. Job vacancies have also just increased by 23% y-o-y.
Truth:
An expanding population needs housing. London has one of the tightest vacancy rates in England (ONS 2018), with only 1 in 50 houses (1.9%) available for rent. Current available rental stock is down by 33% compared to 2017 (Rightmove 1Q2019). Average asking rents have increased by a record 8.2% in 2019, the highest annual rise in the capital since 2012. Knight Frank predicts a cumulative rental growth of 15.9% over the next 4 years.
With demand outstripping supply, average asking rents in London increased by a record 8.2% in 2019, its highest since 2012. Source: Rightmove
Truth:
Prices of London property has grown exorbitant over the years. But, the slowdown in the property market, coupled with the weakened pound and Brexit uncertainty has provided a rare opportunity for investors. West London*, located within one of the fastest-growing local authorities in the UK, is increasingly becoming one of the best places to invest in thanks to rapid population growth, relative affordability and the Crossrail expansion at Paddington and Acton Mainline Station.
The Crossrail (to be known as Elizabeth Line) will be a gamechanger once launched in 2020, shortening distances and driving housing demand. Source: National Rail/TfL
MARKETING AGENT (SINGAPORE)
info@csiprop.com
+65 3163 8343
MARKETING AGENT (MALAYSIA)
info@csiprop.com
+603 2162 2260
project manager
CSI PROP Pte Ltd
This is an overseas investment. As overseas investments carry additional, financial, regulatory and legal risks, investors are advised to do the necessary checks as well as research on the investment beforehand. Investors are also advised to seek independent and qualified legal, financial and tax advisors. The Marketing Agents and Project Manager for themselves and for the vendors or lessors of this property whose agents they are, give notice that the particulars do not constitute, nor constitute any part of an offer or a contract. All statements, contained in these particulars as to this property are made without responsibility on the part of the Marketing Agents and Project Manager or vendors or lessors. All descriptions, dimensions, and other particulars are given in good faith and are believe to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. The Marketing Agents and Project Manager shall not be held responsible for any negligence, consequential loss or damage arising from the use of this information. No person in the employment of the Marketing Agents and Project Manager has any authority to make or give any representation or warranty whatever in relation to this property
© 2014-2019 CSI PROP
Original content here is published under these license terms: | X | |
License Type: | Attribution, Share Alike | |
License Abstract: | You may copy this content, create derivative work from it, and re-publish it, provided you include an overt attribution to the author(s) and the re-publication must itself be under the terms of this license or similar. | |
License URL: | https://creativecommons.org/licenses/by-sa/3.0/ |