As England’s capital and largest city, many overseas investors look at rental and investment property in London. Sitting on the Thames River, the London property market has been the UK’s focal point for more than two centuries. Initially founded by the Romans, London’s global status easily matches Rome, Paris, and Milan in other European destinations.
Specialising in finance, tourism, politics, arts, culture, fashion, education and business, London presents many timely rental and investment opportunities for property buyers looking for solid returns on investments and long-term stability.
However, only careful research and knowledge ensure suitable investments. Delving in at the deep end because of many new homes, and rental investment choices isn’t wise. Time is on your side, so this article discusses the best property investments in London, what to know about rentals, best places to buy, rental demands, and spotting long-term endeavours for sale.
Guide to Investment Property in London
Reasons to Buy Property and Invest in London
Multiculturalism: Much of London’s population was born abroad, hence enjoy combined local and foreign influences. Various restaurants serving national dishes from almost every country enjoy healthy trade every evening as locals taste their way around the world.
Architecture: London’s rental architecture features grand Georgian townhouses, elegant contemporary penthouses, and modern, budget studio apartments. This is a property playground full of various designs and themes to buy.
Entertainment: This hard-working, hard-playing city offers many bars, discos, nightclubs, casinos, restaurants, and pubs to let your hair down and relax after work.
Education: London features world-class universities including UCL and Imperial College hence the high student population. Additionally, many students stay in London given the careers and job outlets.
International Travel: Besides offering air travel hubs like Heathrow, London links to Europe and Ireland with regular ferry services, and the Eurostar high-speed train.
Local Travel: Robust rail networks in the United Kingdom ensures London is two and a half hours or less from Manchester and Sheffield, or Brighton, an hour away.
Tourism: Enjoy world-famous tourist attractions like London Tower, Tower Bridge, St Paul’s Cathedral, Buckingham Palace, River Thames, British Museum Westminster Abbey, and Globe Theatre.
Sports: Avid enthusiasts enjoy venues like Wembley Stadium, Emirates Stadium, Lords Cricket Ground, London Stadium, the Oval, O2, Crystal Palace Sports Centre and many others.
World-Class Shopping: Think shopping malls, high street brand names, boutiques, and designer stores in Harrods, Knightsbridge and Oxford Avenues, Bond Lane, Kings Road, Covent Garden, Jermyn Street, Carnaby Street, Camden Market and Portobello Road Market.
Arts and Culture: Visit Royal Albert Hall, Wigmore Hall, The Royal Philharmonic Orchestra, and many other monthly events in cinemas, opera and dance houses, theatres, museums, and art galleries.
Tips for Rental and Property Investors
- Constantly revise and reassess potential investment rental yields of homes to buy against mortgage payments.
- Research buying locations known as investment backdoor hotspots, with lower-priced properties than their famous, prominent, and upmarket neighbours, but easy access to all amenities.
- Target young working professionals for investment, buy to let properties. They guarantee good income, fewer delays, and low outgoing expenses. Bear in mind; young working professionals want good transport links, entertainment, and shopping facilities near property.
- Employ experienced professional letting agents to handle tenants for you. They know the landlord legal laws and money systems and safeguard your important investment from physical damage. They also vet potential tenants.
Guide to Where to Invest in London
Modern London comprises thirty-one new boroughs. However, some home and property development areas stand out more than others for capital and rental yields. Spot Blue picked our two favourite places for property investment.
Woolwich Property Market: Woolwich offers investment through culture, perfect creativity, revitalisation, and regeneration. Incorporated into the wider Docklands regeneration area, investors enjoy urban life in various leisure, office, retail, residential, and social opportunities. Prime landmarks in Woolwich and nearby include the ferry, Blackheath, Greenwich, 02 Arena, London City Airport, Dockyard Rail Station, Town Centre, Arsenal Rail & DLR, Woolwich Arsenal and Charlton Park & House.
Woolwich’s glorious military history also offers character and listed buildings, including the Royal Arsenal Riverside Social Venue offering places to drink, eat, and socialise, while enjoying waterside walks and public art. Otherwise, the High Street, General Gordon Square and Beresford Square offer great open spaces like Woolwich Common, Charlton Park, Blackheath Common, and Greenwich Park. In addition, Woolwich features many independently owned bars, restaurants, cafes, and shops, boosting hospitality.
Additionally, alongside the high street and other shopping venues, investors enjoy the vibrant street market in Beresford Square. Current urban development promises new residence and rent commercial premises with value, capital and upgraded transport links. Expect 7% price growth, and remember property prices, rent and value get lower the further away from the river. Property for sale in Woolwich.
Battersea Property Market: Expect designer labels, Michelin-starred cuisine and prestigious arts venues that form cultural and artistic hotspots. Tate Modern, Hayward Galleries, National Theatre, Royal Festival Hall, and Old Vic all deserve admiration. Vauxhall underground gives easy access to the city centre and other places, and to go further afield, look at Queenstown Road and Battersea Park. Battersea Park also features the famous London Pagoda, children’s zoo, boating lake, bandstand, sports pitches, and visual arts spaces.
Gatwick airport is just an hour away, and the new northern line extension will offer more transport choices. Battersea’s nine elms area offers more than 3000 investment homes currently in the construction stage. Once completed, property price values, investment capital and yields will rise. Additionally, the Battersea power station area is undergoing new, urban property developments and investment opportunity with planned commercial units, alongside homes.
Battersea attracts families, and although it isn’t budget price houses, the prime location makes this market highly desirable for home investors. When it comes to home rental yields, Battersea real estate market has potential. (See homes for sale in Battersea.)
Find Property Investments in London
Start by browsing our London property guides of homes for sale. Each listing features area info, price, photos, bedrooms, bathrooms, home description, and location. Then, use the for sale contact details for further help, information about that London property investment or to arrange viewings.
About Us: We are Spot Blue, an international real estate agent specialising in property investment for sale in London. We help investors and buyers with opportunities, prices and investing in London property. We hope this article gave good information into an investment property in London, but contact us to know more information or for more help and advice, to speak with a London property agent about prices, areas and viewing. Additionally, follow us on Facebook for emerging investor property news from London and the UK.
Property photos – Reference number UKLONA215