£500,000 is now the average house price in London*. It can get you a family house in Zone 4, a three bedroom property in Hackney, a flat in a converted house in Clapham, or, if you’re seeking buy-to-let or a property investment, you can find convenient apartments near Canary Wharf.
Across the rest of the country, the average price is considerably lower, at roughly £200,000**, meaning that you could buy a much larger property for the same price in, for example, Manchester or Bristol. So how should you choose where to invest in property?
Henry Wiltshire’s Head of Residential Sales Adam Dockley says “Manchester and Bristol are both reporting rapid economic growth, but this appears to be relative. After a period of stagnation, these cities are finally seeing economic growth, but still not on the scale we see in London. Wise investors looking at market growth as well as initial outlay will see that, even with the 2008 crash, London house prices have still successfully increased by nearly 50% over the last eight years according to the Office of National Statistics.”
Statistically speaking, the London property market will continue to see the best rate of growth nationwide, ensuring that property investors in the capital achieve the best ROI. Figures from the ONS (Office of National Statistics) shows that London’s property market growth in the last quarter alone was approximately 10% while growth over the same period in Manchester and the North West was only 0.5%.****
And when it comes to realising your investment and selling your property, the deal will probably run more smoothly in London than anywhere else. According to market intelligence from Hometrack,*** property sales go through in London and the South East faster than any other region of the UK, with deals being completed in an average of four weeks.
Property investors should continue to focus on London and the South East.
“With a clear demand for property in and around the capital, we’ll always be able to find tenants or sell on investments faster than anywhere else in the country. Add to that the steady growth of London’s property market and it’s easy to see why so many investors are purchasing flats in well-connected areas such as Canary Wharf.” – Adam Dockley.
* London’s overall average price was £552,201 according to Rightmove.co.uk. April 15, 2016
** The UK had an average price of £190,275 according to Land registry House Price Index released 30 March, 2016 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/511386/Land-Registry-February-HPI-2016.pdf