Is London’s residential property market still a good investment?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

The covid-19 pandemic has made a huge impact on London’s residential property market. Many local agents are estimating a slowdown in demand from first time buyers and home-movers once the stamp duty holiday ends in March. Reduced demand is likely to result in a slight reduction in asking prices. This presents a great opportunity for residential property investors that believe in the stability of the London market over the long term.

London – 2nd best place for property investment in 2021

In the Emerging Trends in Real Estate 2021 Report produced by PWC, Investors voted London the 2nd best place for property investment in Europe. Outperforming the likes of Paris, Brussels and Frankfurt. London moved up from 4th place on the previous year’s report and was beaten to the top spot by Berlin. Investors from the 25 European countries taking part in the survey highlighted good transport links, forecasted real estate returns and the city’s economic performance as being their key investment drivers.

London has long been a safe haven for residential property investors globally. After the global financial crisis in 2008, a great deal of investors spotted an opportunity to get into the London residential property market at a time when the average property price in London had fallen to £245K (as reported in April 2009). The brave few who took this risk have now seen the average house price in London rise over 200% to £514K (as of Jan 2021). These investors did so for the same reasons highlighted by the investors surveyed in the Emerging Trends in Real Estate 2021 Report. 

Whether London is facing a financial crisis or a pandemic such as covid-19, the fact still remains true that investors continue to be attracted to London for its:

  • Great transport links that allow people to travel around the city with great ease.
  • Stable and predictable returns over the long term.
  • Buzzing micro economy that competes among the top cities in the world.

Sale price up to £81K lower for cash buyers in prime London locations

If the exponential rise in London property prices over the last 12 years is anything to go by, what becomes clear is that a global crisis such as covid-19, can present a strong buying opportunity for well positioned investors. Cash buyers in particular, have reported agreeing sale prices up to £81k lower than the asking price in prime locations such as Mayfair, Covent Garden and St John’s Wood. Foreign investors making a cash purchase could achieve considerably bigger discounts as a result of the weaker pound against the other major currencies. 

Are you an investor that still thinks the London property market is a good investment?

Contact us today to get an exclusive list of properties in prime London locations being sold below market value.



Trevlyn Properties Team

Get in touch today

Get updates and learn from the best

More To Explore


UK Property Prices Fall by 1.9%

Property prices soared by 8.5% in 2020. Yet between March and April 2021 prices fell by 1.9%. This equates to a £5k drop in the


Stamp Duty Holiday Ending June 2021

In Rishi Sunak’s 2021 budget update, one of the key announcements was the extension of the stamp duty tax holiday. This allows property buyers to