Living

The London housing market continues to demonstrate its resilience and potential for growth. Investors can capitalise on the city's long-term economic and population growth trajectory, diverse neighbourhoods, and variety of development projects.

London's housing market offers opportunities for stable returns, capital appreciation, and a solid foothold in one of the world's most vibrant and dynamic cities.

For investors, the rise in private renters and rental price growth, alongside the increased focus on Build to Rent developments make London an attractive destination for property investment. Investors are able to identify a wide range of opportunities that align with their investment goals and contribute to the dynamic and ever-evolving landscape of London's property market. This extends to opportunities across the rental spectrum, with significant need to modernise London’s affordable housing stock.

The BTR sector has witnessed substantial growth in the past decade; JLL estimates the value of the UK BTR sector now exceeds £1.5 trillion. Across London there are currently three million private renters, and this number is set to further increase as the demand for housing continues its upward trajectory. To cater for this demand, developers are increasingly focusing on larger regeneration schemes in inner and outer London, creating purpose-built rental units that offer long-term rental opportunities for investors seeking stable cash flows.

Demand from London’s student population, part of the largest and most liquid Purpose-Built Student Accommodation (PBSA) market in Europe, continues to grow. Additionally the Later Living segment, underpinned by a surge in active ‘baby boom’ generation retirees, is arguably the least well-served segment of the population in terms of appropriate new housing supply.

London's residential property market has outperformed equities in the past 30 years, with an annual growth rate of 6.8% compared to 5.4% for equities. This track record of sustained growth underscores the market's reliability and long-term potential. Investors and homeowners alike have benefitted from the capital appreciation of their properties, positioning London real estate as a solid asset class for wealth generation.

Compared to other major global cities, London offers lower transactional costs as a percentage of the property's purchase price. For instance, buying and holding costs in New York can account for up to 17% of the purchase price, while London's costs are comparatively lower. This factor makes property acquisition in London more attractive to buyers, as lower transactional costs can enhance the return on investment and contribute to a more favourable investment environment.