Is London Letting making a comeback?

Whilst the world's economy remains shakey there are still some areas of the property market that are seeing an increase rather than a decrease in movement.

The London property market has undergone significant changes over the past five years. The housing crisis, Covid, Brexit, and a general slowdown in the economy have affected all parts of the market, but London is one of the most popular cities in the world, and its property market is also one of the most competitive.

In fact, there are many reasons to be optimistic about the future of London as a hotspot for investors and renters alike. The population of London has increased by more than 60% since 2001, and it's predicted that it will increase by another 50% by 2050. This means that demand for homes will continue to rise over the next few decades—and that means good things for investors who might want to sell their properties at the right time. The culture, entertainment, and business opportunities are endless—adding to its appeal as a great place to invest in property

London Tenants Are Returning

According to Hamptons, the London property market is booming and a record 30% of homes let in London this year went to people who previously lived outside the city. The surrounding areas of London, known as the Home Counties – now account for more than half of tenants moving in.  And people aren’t coming back to work there, they’re coming back for lifestyle reasons.

London rental growth has outpaced the nationwide average of 9.8 percent for the second consecutive month, after previously lagging behind the rest of the country for 26 months on the trot.  In March, rents in London increased by 2.1 percent compared to February, while they increased by 0.9 percent nationally.

This is a marked turnaround from previous months when London had been seeing weaker performance than other parts of Britain, with growth faring particularly badly amid Brexit uncertainty and slowing consumer spending in the capital.

Despite being the region with the lowest annual growth, London's average house prices remain the most expensive of any region in the UK, with an average price of £524,000 in March 2022. Unsurprisingly, the amount that landlords are willing to pay for properties has also risen significantly over this period, with some higher value properties now selling for well over £1 million.

At Evolve we are able to assist with a vast number of Buy to Let scenarios including:

• Buy to Let Purchase
• Buy to Let Remortgage and Product Switch
• Capital Raising on existing Buy to Let properties
• Portfolio Landlords (4 or more Buy to Let Properties)
• Limited Company Buy to Lets
• Let to Buy (Remortgage of current home to a Buy to Let)