The Outlook on the real estate market of the London

In contrast to the market for the sale of the London property market rent residential property in London saw a slight increase in 2013.

Battersea Reach

Tower ” One Saint John Wharf “

Apartment class “Lux” in West London

Rental prices of luxury apartments and penthouses in London increased by 0.5% in 2013. However, market experts argue that a small increase in rents is associated not with lower demand and increased supply.

It is now clear that the best yields landlords that rent properties in the suburbs, perhaps it is caused by moving a greater number of tenants from London. The increase in rental for luxury housing in the suburbs was 4.7 %.

The concept of “Prime” real estate – luxury real estate – is the place within half an hour drive from London, such as Elmbridge, Rickmansworth, Northwood, Sevenoaks, Guildford and Beaconsfield.

And traditionally, luxury property is presented in Cambridge, Winchester and Oxford.

It is noteworthy that the rental market is growing now due to the increase in demand by foreigners.

The largest proportion of market renters in the luxury sector are North Americans, which cover 10 % of the market. And although many of them come in order to buy a house – most of them prefer to first rent a house for rent.

There is a clear correlation between the size of the estate and the growth of the change in rents – for example, the three-bedroom apartments saw the strongest growth since 2008 and is now at its peak.

By 2011, the number of tenants in the luxury rental sector grew by 2 million people, and is based share of growth came in the period after 2007, when the problems started with the availability of mortgage lending. After 2011, the UK government has introduced several initiatives for the maintenance industry and to stimulate mortgage lending. However, Savills (largest estate Agency in the UK) expects that the sector of real estate will grow by 1 million tenants over the next five years.

As the demand for luxury real estate will continue to exceed supply, pressure to the market will push prices up, but only slightly, due to the slow pace of economic recovery. The main growth, according to the forecast, Savills, will begin in 2016, when the prices for rent of elite real estate in London will grow by 4.5% per year.

Property investment London

® Helen Antre 23.01.2013