Your opportunity to buy a property in the Prime Central London real estate market could be right now! This is due to a leap in asking rent for properties that are selling at a reduced rate in the area. Read on to learn more about this opportunity that might be just right for you.
An opportunity to invest in London
Benham and Reeves conducted recent research in which they demonstrated that some properties for sale in Prime Central London are being offered at a bargain. Some of them have a discount of £25,000 on average.
In Mayfair and St James, the average discount is 7-9 per cent, but in other areas, the price has been reduced by 4.5 per cent. The tendency indicates that this price reduction is still increasing. The areas with more discounts on properties include Hampstead, Midtown, City and City Fringe, Marylebone, South Kensington and Fulham as well as Earls Court.
Even though prime London properties are boasting discounts, 14 out of 20 areas analysed have reduced those discounts since the demand for London properties (in the midst of ‘back to the office’ rules, have returned. This is a chance, therefore, for London investors to buy in at a lower rate, to ensure further future cost benefits. Particularly as, according to the Zoopla UK House Price Index (published 4th May 2022) highlights Kensington and Chelsea as a supply ‘hotspot’.
As Zoopla further explains, this borough, witnessing an increase in listings across all property types, along with the return of international demand into the London sales market, has investors noting the areas value, “where prices have risen more modestly than the rest of the country”.
What the property statistics show
While properties in Prime Central London are being offered at a lower rate, statistics show a leap in rents that are expected to continue rising.
According to the JLL agency, there is a leap of 15% in rents. A year ago, this scenario was completely different as rents had a 10.4% fall. Rents are now 3.1% higher than in pre-pandemic times. Tenants negotiated reductions in rents last year, but now they are facing higher rents when renewing. Some are leaving, but others are staying as they are observing how competitive the London property market currently is. That is one of the reasons why there is an 18% per cent annual increase in Prime Central London rent renewals this year.
However, the property stock is still low. In fact, there are 71% fewer properties compared with the first quarter of 2021 and 59% less than in the first quarter of 2020. So here’s a chance for investors to fill that gap. Particularly as the property market conditions are expected to improve throughout the rest of the year
At Rickman Properties, we can help you find properties in Prime Central London to buy or rent. Contact us to chat to one of our property experts today.
