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Where to invest in London property

Where to invest in London property

With international investors continuing to place London property at the top of their wish-list, we look at three boroughs that will offer better-than-average returns.

London offers domestic and international property hunters a wide choice of homes and commercial premises, but not all of the capital’s boroughs are equal when it comes to price growth or yields. For example, properties for sale in Bloomsbury command higher prices than homes in outlying districts because competition for the limited amount of central London real estate on the market is intense.

According to a report by the BBC, 2015 is likely to see relatively modest increases in London property prices of between 3% and 4%. Therefore, buying now might be laying the foundations for taking advantage of higher prices in the next few years.

That may be all very well, but London is a big place. The capital is nothing if not diverse and this diversity extends to a housing market, which caters for both the extremely well-heeled and those who are less so. If you are ready to invest in the capital, therefore, which three areas might be tipped as those in which to invest?

Bloomsbury

One of the great attractions of property investment in Bloomsbury is the sheer range and diversity of buildings such as:

  • Grand and elegant family homes from the Queen Anne and Georgian periods.
  • Solid red brick blocks built during the Edwardian days.
  • Comfortable, purpose-built flats with their own security and porterage.
  •  Buildings which have been converted to provide up to three-bed flats and studios – perfect for buy to let investors and for renting by students.

Wimbledon

In the southwest of London, property for sale in Wimbledon reflects a similar diversity in the range of properties ripe for investment.

Buyers and tenants from Britain and abroad are attracted to the fine homes with prestigious addresses in what is already established as its own village community.

Yet there are also investment opportunities at the other end of the scale, where first-time buyers, buy to let landlords and others might snap up property at reasonable prices.

The key to finding the home that best suits your needs and purposes is likely to be in the shape of a locally-based estate agent – one that knows the area intimately and is able to advise not just on the property itself but the local amenities, such as schools, leisure and recreation facilities, transport links and shopping.

Wandsworth and Clapham

With an environment almost as leafy as Wimbledon, Wandsworth and Clapham have long been an investors’ favourite – drawn by the schools, gardens and easy access to central London.

Both capital growth and rental yields in these two areas are among the highest in London and seem unlikely to change in the near future.

In addition to these upmarket opportunities, Wandsworth also has a need for more affordable housing – as evidenced by a news release by the local council on 26 August 2015 – focused principally on the Tooting area of the borough.

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