Despite Brexit uncertainty, London is still one of the best cities in the world in which to buy investment property. Whether you’re a first-time buyer, a homeowner wanting to up or downscale, or you’re simply looking for investment property for sale, now is the time to buy property in the UK. But with so many parties needed to successfully invest in property, it is essential to ensure that you work with quality people and get the best advice out there. This blog shares the facts with you, as well as expert advice on which properties to invest in.

Why now’s the time to snap up investment property

Almost a quarter of a million new properties will need to be built every year in England to keep up with a population growth that is expected to reach 28 million households in the next 20 years. Research by Heriot-Watt University puts the current housing backlog at just under four million homes. Despite the looming property shortage crisis, the number of new homes being built is at its lowest in a hundred years. With a shortage of properties for sale, households and investors clearly want to be on the right side of property ownership, whether as a buy-to-live-in home or a buy-to-let property investment.

A second compelling reason to buy investment property now, is the resilience of the London property market, which has fared better throughout the Brexit crisis than was originally predicted. Initial financial wobbles, which saw falling property values and transactions in the midst of Brexit uncertainty, have been offset by strong foreign investment in the London property market in the last 18 months. This is mainly thanks to a favourable exchange rate against the Pound as well as confidence in the long-term prospects of property in one of the most popular cities in the world. 

In fact, despite the increase in stamp duty late last year, accelerating price growth is expected in Prime Central London districts until at least 2020. Investors are snapping up London apartments and properties before the predicted price growth reaches its full impetus – one which could make it difficult for buyers to get their hands on properties in sought-after areas.

Key ways to take advantage of property investment in 2019 will revolve around choosing the most favourable areas in which to buy property and understanding the different types of property investments.

London investment property hotspots

The sheer size and diversity of London has seen significant differences in the performance of even neighbouring locations. Whether you’re a seasoned investor looking for locations that could yield the highest returns, or a first-time buyer or homeowner wanting to move house, it is recommended that you seek the professional services of a property company with an outstanding track record of delivering market-leading returns while mitigating the risks of real estate investment.

Although the London property market is in constant flux, some of the most promising growth prospects are for areas around the Crossrail route. The new Elizabeth line will run from Reading and Heathrow in the west, through 42km of new tunnels under London to Shenfield and Abbey Wood in the east. The new railway will fully integrate with London’s existing transport network. London’s new high-capacity rail service is expected to launch later this year, which still gives investors time to snap up property for sale in station areas that are expected to yield large gains in future. Some properties are already recording double-digit price growth.

Other areas of London that are expected to continue to be profitable for property investment are prestigious Zone 1 addresses in the heart of Central London. Always popular with both buyers and renters thanks to the plethora of famous sights and experiences on its doorstep, Central London is seeing a number of large-scale residential projects offering new property investment opportunities in the area. Among them the new Bronze in the heart of Wandsworth in the highly sought-after Buckhold Road adjacent to King George’s Park, and Hoola residential towers atop a landscaped hill that commands a 360 degree view over the Royal Docks, the Thames, O2 Arena, Olympic Park, the skyline vista of Canary Wharf and City of London.

Another location that is set for a bright future is Leytonstone in the London Borough of Waltham Forest, North East London. Popular with those seeking investment property, Leytonstone is conveniently situated on the Central line on the boundary of zone 3-4. The location is proving popular with younger individuals who are relocating to the outer boroughs of London where they can get more space for their money with more affordable (in London terms) prices that average at £462,000, compared to the average overall London property price of £629,012 by Rightmove’s 2018 estimates. In the last five years, house prices have soared by 83% in Waltham Forest.

Advice on types of property investments

The reasons for choosing property to invest in are many. You may be about to take the first exciting steps towards owning a home of your own for the first time. Or you might already be a property owner who would like to increase your property equity by upscaling to a more expensive house, or perhaps circumstances dictate that you downscale to a cheaper property. Meanwhile, savvy investors will be familiar with the capital gains when growing your portfolio with property investment opportunities.

Buying a property to live in

Whether a first-time buyer or property owner of many years, it’s always advisable to use the services of London estate agents when buying or selling your property. Property specialists are familiar with the intricacies of the London property market, which means they can provide accurate information based on thorough area analyses, including development opportunities in off-market areas that can deliver high return on investment. When selling your property, a trustworthy property company will make sure that your property is exposed to a wide range of interested buyers. They are also able to handle all pre- and post-sale details for a hassle-free sale of your property.

Buy-to-let investment property

The demand for rental property has doubled in the last 20 years and now makes up 11% of the total housing stock. The housing shortage along with low interest rates and cheap mortgages, have created a perfect storm for buy-to-let property investors. But purchasing property in an area of stagnating house prices or having to deal with problem tenants and all the legal ins-and-outs of being a landlord can soon take the shine off buy-to-rent investments.

In order to maximise your returns and minimise your risks, you’ll need the expertise of a property lettings and management company that offers an initial purchase and a pre-completion service, as well as a lettings facility and tenancy management services, through to resale and exit.

As a buy-to-let property investor, you will need to accurately answer these crucial questions:

How clued up are you on the market you’re about to invest in? The more you know about the area, the more likely it is that your investment will pay off.

Do you understand the risk around investing in property in the area you live in? You may be familiar with the location but if house prices drop in the area you’ll take a hit on both your live-in property and your buy-to-let.

Have you thought about why a tenant would want to live in a particular area? If you are buying a property near a university, you’ll want the accommodation to be comfortable but not too up-market.

Have you crunched your buy-to-let numbers? Work out the cost of houses you’re viewing and the rent you are likely to get. Keep in mind that best rate buy-to-let mortgages have large arrangement fees. Having taken into account the mortgage rate and potential rent, and factoring in property maintenance, you’ll have an idea of how viable your investment property is likely to be.

Are you familiar with the risks associated with a buy-to-let? This includes rising interest rates and your property standing empty for a month or two.

How involved do you intend to be as a landlord? London estate agents will charge a management fee, but they’ll take care of all the details around administering a rental property, from handling plumbers and electricians, to dealing with a problem tenant.

Discovering the right investment property partner

If you are a property investor looking for a fresh approach to real estate, focused on simplicity, quality, trust and performance, contact us at the Strawberry Star Group to talk about how our end-to-end service can provide you with great opportunities across the entire spectrum of real estate investment.

We are an international property company with an extensive local presence in London, and we pride ourselves on an outstanding track record of delivering market-leading returns while mitigating the risks of property investment.