London is one of the richest property markets in the world with prices for prime real estate firmly in the multiple million pound region. However, in recent years the market is becoming polarised, with a great deal of choice at the top end but a lot less availability in lower brackets. It is now becoming increasingly challenging to find a good investment for less than £250,000.
Property investors targeting the lower brackets in London are facing high levels of competition, both from first time buyers and other people looking to invest in properties. The amount of affordable homes on the market is shrinking, both because of rising prices and supply issues. According to recent research by Savills only 75 of the 627 council wards in the capital had average house prices of £250,000 or less.
The high prices mean searching for affordable properties can take much longer. It also forces people to look at areas they had not previously considered. Traditionally first time buyers would be looking at the boundaries of zone 2 and 3 to find affordable homes, but prices in these areas have risen too. Searches now start much further afield and many people are looking outside of London itself to see what their money can buy them.
Luckily the reward for finding a suitable property in the £250,000 price bracket is great because homes in the lower brackets have the highest rental yields. They also have the most potential for rises in the future meaning you could be on to a really good investment. You’ll need to put more effort into the search, especially if you want to live in London, but the rewards are there if you are successful.
When searching for properties it is a big bonus if you are flexible and not restricting your search to specific areas. Buyers who work in London should consider how much they can get by living outside of the city and commuting. In many cases the price you would pay for a one or two bedroom flat would buy a family home outside the city so it is worth considering. If you’re looking to make a property investment in Brent or any other part of the capital, we are here to help you make the right choices and find suitable properties that match your needs and budget.