Since the Brexit vote, you might be forgiven for thinking that smart property investors were tiptoeing around the London property market and that those who were still interested in buying into the UK were looking at the regions for greater value. While it’s true that there is most certainly value in other parts of the UK, it is also true that the London property market is very much alive and well and therefore where to put your money becomes a question of deciding what your investment goals are. Here are the main reasons why London and the South East is still a good choice.
You can opt for growth or yield
London is really a number of miniature housing markets and hence there are options for both those looking for growth and those looking for yield. Significant investment in transport infrastructure, most notably Crossrail, has made some London areas massively more attractive both as residential and as commercial areas. In fact it has essentially created new commuter hubs. These offer clear opportunities for growth investors. At the same time, there are mature areas which offer excellent options for those looking for reliable yield.
There are a variety of investment niches
When discussing the London property market, the residential market is probably what springs to mind first. There is, however, also a thriving commercial property market. As well as the constant demand for traditional office space, there is also a demand for more innovative forms of commercial property, such as co-working spaces, as well as specialist commercial niches from hotels to care homes. The simple fact is that not only is London the UK’s most populous city, it is one of the most densely-populated cities in the world and that means that there is always a strong demand for all kinds of property.
The risk/reward ratio is still very favourable
The impact of Brexit is unlikely to be the sort of Armageddon which was first envisaged (at least by some). While financial services are indeed a significant part of London’s economy, it is doubtful whether Brexit will lead to mass job losses in this sector and, even in this worst-case scenario, London is a home to many other industries, in particular creative ones. In fact, London’s openness to innovative and even disruptive businesses is arguably what sets it apart from many other cities, particularly in Europe. Paris, for example, is currently trying to tempt tech companies away from London while engaging in a battle with Amazon over its disruption to established businesses in Paris. This is unlikely to go unnoticed by decision makers at other companies.
London has options for investors with short-term horizons as well as those thinking long term
Always remembering that, with regards to anything connected with property, these terms are relative, it is fair to say that London has opportunities for investors with different time-frames. On the one hand, the speed of the London resale property market is almost legendary. On the other hand, the fact that London is a prime location for property development means that those able and willing to invest over the long term will find ample rewards.
London has an international outlook
Unlike many other places, London not only welcomes people from all around the world as both visitors and residents, but allows them to enter the property market on the same footing as residents. This pretty much guarantees a buoyant property market, both residential and commercial.
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