Safe as houses: Why London property is a trusted asset

Amid global economic uncertainties in 2024, London’s property market remains resilient and reliable. Known for its robust performance across various economic climates, London real estate remains a prime choice for property investors worldwide. In this article, we will explore the factors that contribute to London property’s reputation as a trusted asset internationally.

London property a reliable investment

1. Historical performance and stability

London’s property market is one of the most resilient globally. Despite global financial crises, Brexit and the COVID-19 pandemic, the past year saw demand surge by 58% over pre-pandemic levels. The significant percentage of properties owned outright is a key factor driving this stability. A report from the previous year reveals that only 28% of London homes were owned with a mortgage, while one in six properties were purchased outright with cash — reducing the impact of mortgage rate fluctuations and helping maintain sustained demand and a buoyant market favouring property investors.

2. High demand and limited supply

The appeal of the London property market lies in the perfect combination of high demand and limited stock supply. With its globally renowned educational institutions, diverse culture and thriving job market, this capital city attracts residents from around the globe. This constant demand from students, professionals, wealthy expatriates and fewer owners feeling pressured to sell keeps real estate prices buoyant in London. This factor further offers an excellent hedge against economic uncertainty.

3. Favourable payment plans

Another enticing feature for investors in London property is the flexible 10:90 payment plan. Investors pay just 10% of the property’s price upfront, with the remaining 90% due at possession. This minimises the initial outlay and allows buyers, especially those overseas, to secure a property without the immediate financial burden of total financing.

4. Infrastructure developments

London’s ever-evolving infrastructure, including the well-developed Crossrail transportation network, has significantly enhanced accessibility, making previously less connected areas highly desirable. Areas like Stratford, Barking and Farringdon are rapidly regenerating, drawing in new investors and businesses. Multinational corporations, including Google and TikTok, have chosen London as their headquarters, bringing in global talent and raising demand for commercial and residential properties.

5. Strong rental yields

Recent data indicates projected rental yields of 3-5% in most London areas, with some new-build developments offering yields over 6%. These numbers present a compelling opportunity for overseas investors seeking consistent income streams and capital growth. These rental returns significantly outperform many countries’ traditional savings or fixed-income investments. The constant influx of professionals, students and expatriates to this city ensures a steady tenant pool and secure long-term income for landlords.

6. A diverse range of investment choices

Depending on varying budgets and strategies, investors in London can choose from a wide array of opportunities. From luxurious apartments in central locations to suburban family homes, there’s something to suit almost everyone’s goals. Emerging neighbourhoods such as Nine Elms, Wembley, Woolwich and Stratford are potential candidates for capital appreciation, while established areas offer stability and high rental demand.

7. Transparency and regulations

London’s property market attracts thousands of investors annually thanks to its regulated framework. Property ownership is well-documented through the Land Registry and strict building regulations maintain market integrity. Recent reforms such as tenant protection laws, leasehold ownership and stringent anti-money laundering regulations further boost investor confidence. These factors, combined with a stable political environment and global economic standing, make London one of the safest global property markets in which to invest.

Your London property partners

With its proven track record of stability and growth, London’s dynamic property market continues to offer lucrative returns. Whether you’re a first-time buyer or a seasoned investor, the capital’s diverse real estate options provide a wealth of investment possibilities.

At Benham and Reeves, our team of experts guides you through the complexities of this thriving market and ensures you make the most of London’s evolving trends and opportunities. With over six decades of experience and deep market insight, we offer unparalleled insight and guidance that help you achieve your investment goals. Contact us today for a one-on-one consultation and access to London’s top investment opportunities.