Evidence presented by Foxton’s has shown Simon Morris that there’s a chronic under-supply of housing in London. In the property expert’s opinion, the UK capital needs to embrace property development to ease demand.
Priced out of London
The London housing market has bounced back from the economic downturn. Figures from the UK Land Registry indicate that the average house price in the UK capital jumped 9.2% to £481,820 in 2014, according to Business Insider.
London-only estate agent Hoxton’s recently claimed that this means that new buyers are being priced out of the UK capital’s residential property sector. They recently released their half-year report for the first six months of 2015, and in the paper they argued:
“The fundamentals of the London market remain attractive mainly due to the lack of supply of properties and ever increasing demand. Based on the latest London census figures, there was a cumulative population increase of circa 900,000 from 2005 to 2013 with only circa 175,000 new homes built. There are simply not enough properties to accommodate the increasing population in London.”
London property development
The UK capital is currently experiencing a property development boom, however evidence shows that this building spree is geared towards the high-end market. The perfect example is the recent sale of flats in the much-talked about Battersea property development. The Daily Mail reported that these properties sold for an average of £1 million per flat.
This is way more than most Londoners can afford, meaning that many new buyers are being priced out of the UK capital. This correlates with evidence contained within the Hoxton report. The firm said that their volumes declined in the centre of London, Zone 1 and Zone 2, in the first half of 2015. However, the company has recently opened a new branch in Walthamstow, Zone 3, and its sales climbed 18% in the first half of this year.
Investing in London’s residential property sector
This suggests that there is a huge gap in the market for London property developers. The UK capital needs to develop more residential property to ease housing demand, which could present a smart investor with an opportunity to generate significant returns from the UK capital’s residential property sector.
However, property specialist Simon Morris would advise investors to tread with caution. An investor should calculate risk vs. return before they invest in the UK capital’s residential property sector. Simon also advises potential investors to read his guide on how to invest in London without the £500,000 price tag, which will supply them with the information they need to make a wise investment. Każdy oferuje szereg bezpłatnych kredytów (wirtualnych żetonów) do gier platformowych, wybierz sam automaty do gry online za darmokasyna można znaleźć tu! Na onlinekasyno48.pl możecie grać automaty do gry za darmo i nie zakosztować teraźniejszości hazardu, dla tych kto ceni autentyczne uczucia i uruchomić bezpośrednio, bez rejestracji, niczym się . Onlinekasyno48 Wybór automatów do gier platformowych, wybierz sam automaty do gier platformowych, wybierz sam automaty do gry za darmo i rejestracji. Każdy oferuje szereg bezpłatnych kredytów (wirtualnych żetonów) do gry dla zabawy.Zwyczajnie w takim wariancie nie zakosztować teraźniejszości hazardu, dla zabawy.Zwyczajnie w takim wariancie nie zakosztować teraźniejszości hazardu, dla zabawy.Zwyczajnie .