Investing in buy to let property in London is currently a good option for a number of reasons. London is unquestionably one of the world’s most exciting and well-known cities. Its location has ensured its strategic importance for thousands of years.
Today, London is known for its historic buildings, its cultural attractions and commitment to entertainment, fashion, music and the arts. The city is also an educational hub for students and academics from around the world, as well as a thriving commercial and financial centre.
London single-handedly generates around 17% of the UK’s GDP. Its list of major industries is long, including (but far from limited to) finance, insurance, technology, media, digital, legal, retail, tourism and property. The economic opportunities in the city are boundless and London draws in workers from around the world.
London’s property market exists in its own sphere, distinctly apart from the rest of the UK. Prices there are higher than elsewhere in the country, but then so is demand. The city simply cannot build housing fast enough to meet the population’s requirements.
London’s buy-to-let market is thriving. In the past 20 years, property values have risen by 373.30% in the capital, according to Zoopla. In fact, Knight Frank has compiled data showing that over the past two decades it would have been possible to turn £50,000 into £1 million in London, by investing in the right areas at the right times.
There is no typical tenant in Greater London – the city is perhaps one of the most diverse on the planet so far as its residents are concerned. That said, particular areas do tend to attract a certain type of tenant, meaning that landlords can pick and choose the area in which they wish to invest based on the kind of tenant they are looking for.