The property market in London has traditionally been referred to as a sellers’ market because of the level of demand and limited number of properties that are available. Owners normally have the power to dictate the price they wish to sell for and can even see it rise as a result of the competition to make a purchase. Buyers have very little authority, especially when you consider how many people are competing to buy properties.
These market conditions can put people off but there have been subtle shifts recently that suggest there is movement towards more of a buyers’ market, particularly at the higher end. There are substantially more properties available valued at over £2 million than in previous years. This has lessened the level of competition and given buyers more freedom. It also means that sellers cannot simply hold out for the highest offer they can get.
The shift, whilst bringing more power to purchasers has also revealed more investment opportunities. With lower competition there is an increased chance that buyers can get the property they want for a competitive fee. Investment properties in Kensington, Chelsea and even Westminster are more readily available so if you’re quick you can find something that matches your needs. Obviously rushing into a purchase is never a good idea but if you let your interest be known and get lucky you can get away with a deal.
It is always important to remember that buying an investment property in London should be a long term commitment rather than a short one. The opportunity to purchase in the current market at a more affordable rate is an advantage but you may need to hold on to the property until prices rise or the conditions return to a seller friendly state. Luckily the rental market in London is also thriving so you can make a great return by renting whilst you wait for prices to rise. We can provide you with various different services to make your life as a property investor in London much easier, including our innovative guaranteed rent schemes which give you a guaranteed income no matter what the circumstances.