The rental market of London is still attractive to investors

In that time, all titles of books that tell about real estate in London, are full of news about the growth of prices for luxury properties in Central London and the recovery in property prices in East London, the largest price increase of rental properties is observed for the last three months in South London. These are the latest research of the London property market. Rents in Greenwich have increased by 11% over the past year, rents for residential property in the London area of Bermondsey, Southwark and Southbank increased by 9%, far leaving other parts of London.

The vast territory of North London, including the favorite places for families Muswell Hill and Archway saw no growth in rental prices, while the famous index N7 in the prestigious Islington saw the fall. Rent in the prestigious area of Westminster and Kensington increased by only less than 1%. And only in the area Knightbridge rents grew significantly by almost 3%.

A mixed picture is observed in the fashion trend area of East London – Shoreditch, but in General growth of prices observed. In Areas of Victoria Park, Bow and Canary Wharf observed modest growth, despite large investments of construction companies in the development of these areas. London Fields, which is historically famous for the strong rental market continues to demonstrate a good, but nevertheless not the best results – no more than 6% growth per year.

Investors seeking an investment with better returns makes sense to look at two other areas of London such as Bayswater, where an increase of 6.2% and King’s Cross , where the growth amounted to 8.2%.

Was not a big surprise rise in property prices in Greenwich. This is a beautiful part of London with great transport links to City and Canary Wharf. Until recently, this area was primarily considered as a part of London, designed for families. But a huge number of built new housing, modern infrastructure and proximity to the main business districts of London, led to the fact that the area became popular with young people .

In the UK for about 3800000 families live in rented accommodation. One third of them are families with children. The proportion of households living in the rented sector was in 2012 17% compared to 2001, when such families was only 10%. For many young families to live in a rented house – the only way to have a roof over your head, because their budget does not allow you to save up for a down payment for mortgage lending.

In this regard, the UK government is preparing a new program to stimulate the rental market in the UK, which will help young families and families with low incomes to find affordable, quality and safe housing, and investors will provide another opportunity for the profitable investment of their capital – this opportunity can provide not only the increase in capital value, but a stable rental income.

® Helen Entree. 16.10.2013 g.