London has been the place to be for investors for some time now, but what exactly does the future hold for the capital’s property prices? While we certainly don’t have a crystal ball here in our Wanstead office, there are plenty of indicators that signal there is further growth ahead for many of the piles of bricks situated within the M25.
That being said, growth probably will not race ahead like it has done previously. Some analysts are predicting a slowdown for house prices in London through 2016 and into 2017, with Central London property levelling out at 0 per cent. However, for those dwellings just outside the beating heart of the city, prices are expected to continue to rise, albeit at a much slower rate than we’ve been experiencing recently.
There is more to London than just London itself
One thing that many people fail to recognise about this great city of ours is that it is far more than just the city itself. What do we mean by that? Well, we see London as a global hub that actually has its own property microclimate, one that can often remain largely unaffected by English domestic issues.
Much of London’s recent growth has come from external investment. The likes of Russia, China and the oil-rich Middle East have all ploughed huge amounts of money into the capital’s property market, so you need to take a wider view when it comes to politics and economics. What affects the British economy may not influence what happens here in London as much as it once would have done.
London is expanding
This overseas investment is also changing the whole dynamic of the city. With the superrich buying up everything within the very centre of the capital, former residents are now looking further afield to lay down a new set of roots.
We are seeing more and more people from places like Islington and London Fields coming to our Wanstead and Buckhurst Hill offices looking for property that will still allow them to have easy access to Central London. Therefore, we believe that the best performing areas will be those that are within a 30- to 60-minute commute from zone one over the next few years; and with Crossrail just a couple of years away, the spotlight is also moving towards areas such as Manor Park and Custom House, too.
Governmental policies will do little to change things
If you are looking for one constant amongst all things London property, then demand is surely it. The government are introducing a raft of measures all with the aim of increasing supply and easing off the extraordinary demand that continues to drive property prices up in the capital and beyond, but many believe they won’t even scratch the surface.
According to a recent survey of 88 economists conducted by the FT, the Help to Buy scheme and the promise of more affordable housing will do little to change the fundamental reasons why London property is now averaging out at around £500,000. Their view is that the only type of property that may have to endure some sort of downturn is those at the very top end of the market, and that would only happen should a Brexit come to pass in June this year.
London property prices are something that no one can predict with 100 per cent certainty, but we believe that areas surrounding our two offices in Buckhurst Hill and Wanstead will fare better than the majority of other UK postcodes over the coming months and years. If you would like to find out more about any of the properties that we have available please do not hesitate to contact us here at Petty Son & Prestwich.