Although it’s not our place to comment on them, we are aware of the various factors which are causing some to doubt the success of the London property market continuing. It would be fair to acknowledge that most – if not all – of these factors in some way relate to how the UK as a whole will continue to relate to and interact with other countries around the world. With this in mind, we believe there is great value to see how respected names from other countries view the market. It is fantastic to see that many hold the same positive view that we do.
CBRE, the American real estate and global property investment group, carried out a study on the market of all 33 London Boroughs. Their conclusion was that the outlook was very healthy despite the concerns some have. Their research also indicated that they believed there would be no barrier to growth levels, averaging at some 15%, to continue.
The highest levels of growth were found to be in outer London areas. Barking and Dagenham, as well as Waltham Forest, showed the most impressive growth levels, with property values in those Boroughs increasing by an average of just under 24%. As impressive and important as this outer growth in property value is, it should not be taken as an indication of growth stagnating or falling in the traditionally successful markets.
In the view of CBRE, Kensington and Chelsea remains an attractive Borough for property investment. The figures show that properties in this Borough command the highest sale prices and attract the highest levels of increase in rental income. That this remains the case despite the growth in other areas of London speaks volumes of the quite remarkable success portfolio holders have access to in Kensington and Chelsea.
We are delighted – but not surprised – to see CBRE come to the same conclusion as ourselves in respect of the London property market. Whilst we understand, appreciate and respect the reasons why some have concerns for the future outlook, it’s important to remember that the capital stands as one of the most important and popular cities on the planet. There’s little we have seen that would cause us to doubt this remaining the case for a very long time to come.