Growth may be slowing for house prices, but the long-term outlook still looks promising.
In 2015, London’s booming population will exceed 8.6 million, matching the previous population peak reached in 19391. That was followed by a world war and decades of decline, while today, the future is much brighter.
The capital’s recent expansion is the result of its renewed status as a thriving, cosmopolitan global city, attracting business, talent and money from all over the world. More than 10 million people are expected to live in London by 2029, rising past 11 million by 20502.
Not surprisingly, London’s popularity is reflected in its frenzied property market. A typical home in London is now worth £475,000, more than double the average for England and Wales3. New properties in the most sought-after areas of London, such as Mayfair and Knightsbridge, are some of the most expensive in the world4.
Whether you want to buy a home to live in or rent out, property in London is widely viewed as an attractive investment over the long term.
Nevertheless, it is important to bear in mind that prices could fall, as they did in the wake of the credit crunch and, more steeply, in the 1990s.
Fortunately for prospective buyers, various factors support forecasts for a steady rise in valuations in the coming years. Here, we look at the prospects for London property and ask how you could invest.