London is one of the most liked and profit-making cities in the world. However, just like in every other business, there are risks. It is only logical to take a deeper look at property prices in London before making an investment.
While a tiny increase during the pandemic gave hope to real estate investors in London, it appears that the momentum is slowing down since February. The average cost of a decent home in London is dropped around %1,3 and settled at 496,266 pounds. These values are derived from official sources such as the Land Registry of the UK.
Is It Good or Is It Bad?
To be honest, it is both. Prices in February are still %4,6 higher than the last year, which is satisfying. However, regarding the annual rate of growth, London is the lowest. That is compared to other regions in the country.
In only one year, prices are bloomed at %11,7 in Sutton, %11,4 in Ealing, and %13,3 in Merton. If we look at the national level inflation, we see an increase of %8,6. The most significant increases are seen in outer London, where most of the properties have outer space.
The real estate market in London has shown a hope-giving strength since the lockdown initiated in May. However, the city seems to lose blood in terms of the momentum of house prices. So, is it safe to make an investment in London nowadays? There’s no simple answer. It is a double-edged sword.
What about Other Factors?
Chancellor Rishi Sunak ordered various relief actions to keep the real estate investment alive. For example, the stamp tax was removed for the first 500,000 pounds of real estate sales. Seeing the positive results of this action, government tends to continue the tax relief.
As you may have heard, there are some tensions between France and England regarding the fishing rights over the sea. While the diplomatic tension is going high, this may result in various effects on any kind of investment. This is something to keep in mind.
If you are thinking about making an investment or buying a house in London, you may earn a considerable profit by making the right choices. In order to make the right choices, you will need to work with an expert. Well, you have got Trem Global in this respect.
We are experts in terms of investment, real estate, and citizenship acquisition. If you have any questions about these matters, feel free to get in touch with us!