The Eastern part of London – a most promising area for investment

Price growth at the top of the market of elite real estate in London has slowed, but in other UK cities prices continue to rise.

The average UK growth in house prices amounted to 8.2% per year, however over the last quarter, they fell by 2.4%. A more thorough study of the data shows that two-thirds of London areas saw prices fall, and in the London Kensington High Street prices fell by 11.8%. It is followed by Notting Hill and Hampstead, with prices falling by 10% . But the areas of London, Soho, Sutton, Tottenham showed growth, pushing up overall prices for property in London. However, if we exclude from the statistics the old elite areas of London, in 93% of zip codes prices for property in London has shown growth and a General rise in prices amounted to 8.2% per year. The average cost of property in London reached £533000.

Last year an extremely diverse real estate market of London is undergoing major structural changes. The old elite of Central and West London, which usually has been a driver of price growth is now under pressure from a number of factors. First, it is the global decline in energy prices, the slowdown of the Chinese economy. Then the increasing tax burden in the form of higher rates of Stamp duty for upper-tier market. The upcoming vote on a Brexit is also having a deterrent effect on buyers.

Meanwhile, it seems that the UK government is not much concerned about the interests of the world’s major capitals, which have traditionally poured their money into the London real estate market, strongly pushing up prices. A priority for the government challenge now is affordable housing in London, which is necessary to provide the growing population of the capital of the United Kingdom. The most dynamic now becomes the Eastern part of London, where I prefer to buy housing professionals in the capital and prices still have potential for growth.

® Helen Entree. 17.05.2016 G.

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