London's Housing Boom May Be Over, But Solid Growth Ahead



The property market is constantly changing with highs and lows that are influenced by many factors. Each area is different and London, as the capital city, has a particularly fast paced property market.

Property in London has remained in high demand in spite of the prices being significantly greater than in other cities across the UK.

The Gherkin London




The Property Boom In London

Following a crash in the property market in 2008, housing in London saw a steep rise in prices. One of the biggest contributing factors to this was that housing was still hugely in demand. Career opportunities are greater and earnings potential higher in comparison to other areas of the country and this undoubtedly attracts people to living in the capital.

Another attraction of living in London is the vibrant and diverse lifestyle it offers. Government schemes also offered affordable housing for first-time buyers and people on lower incomes to help them get onto the property ladder. This affected both property development and property prices.

Similarly, mortgage lenders adapted to the changing market by offering a range of lending and repayment options enabling people to get into the property game, either with their own home or by investing in a property.


Continued Steady Growth

There are now signs that the market is slowing down. However, this does not mean that the market has crashed. In fact, the property market is showing steady growth. One reason for this is that the interest rates continue to be very accommodating.

Another factor contributing to this steady growth is interest from international buyers in the UK property market, specifically London. While some argue that foreign investors are destroying the affordability of homes in London, others disagree and would claim that government tax contributions from these buyers are actually subsidising affordable housing schemes.

London HouseSigns Of A Housing Market Crash

While international property buyers have their benefits for the property market in the city, they could also play a major role in the market crashing. As money from international buyers is completely discretionary, it is unpredictable. When politicians create tax policies, they often fail to take this into account.

International buyers choosing to purchase property elsewhere could also impact on the market, but it is not only foreign developers choosing to buy elsewhere that is an indication of a potential crash. Another sign to watch out for is the behaviour of lenders and estate agents. Monitoring their movements can give clear indications about the state of the property market.

Overall, although the market may be slowing, long-term growth is still highly likely. This means that now is the perfect time to invest in London property. Choosing to buy in the capital at this time is a decision that has the potential to be a lucrative investment in the long-term. Regardless of whether you are buying a family home that you want to sell on for a profit in a few years or if you are buying a property to rent out, opting to purchase property in London now is a financially sound decision.


Jonathan Stephens is the founder of SurrendenInvest and has a wealth of experience in the property sector and shares his knowledge by writing for property and investment magazines.

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We would love to hear what you think about the property market in London.


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