The property market in central London is starting to experience a fall in property prices due to uncertainty in the market and the current political situation. The stamp duty changes have had an impact, particularly in central boroughs where average prices are over £1 million.
A reduction in foreign investments has also had a part to play with interest from Russia falling as a response to their economic struggles. This has seen many properties put on the market at reduced rates as Russians look to liquidate assets quickly with the Russian economy looking poised to enter recession.
London is one of the most unique property markets in the world and presents challenges for people looking to invest in it. With prices falling in central boroughs, there are more opportunities for investors to purchase properties and return them to the market as rentals. This strategy will help investors make a steady income while prices fluctuate then sell when growth returns. Buyers looking to make a purchase, do up the property and sell it on for a profit will have to look further afield for suitable projects.
With current conditions investors should be set for longer term investments with rentals rather than quick victories with sales. The savviest ones will already be browsing the market to find boroughs that are poised to become the focus of investment whilst central areas are so turbulent.
The market conditions are making it increasingly challenging for investment advisers and portfolio specialists. When buyers find a property they are interested in purchasing they have to take additional care to ensure they weigh up the costs properly. The potential for a mansion tax should be considered when looking at properties valued at over £2 million. You should also negotiate much more carefully because conditions are more beneficial to buyers than sellers.
Consulting a property adviser with conditions how they are is more important than ever. You may find an opportunity that looks compelling but you need to consider the long term and ensure there aren’t better places to put your money. If you are considering making a property investment in Hackney or any other area of London, you can find the help you need with our expert team.