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Experience Invest

Why London property prices haven’t topped out yet

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The team at Experience Invest offer advice and assistance on residential property investment, and having been around for over a decade we’ve seen the property market go through various ups and down through the years.

Many commentators are taking the latest figures from the Office for National Statistics, as proof that house and property prices in London have finally topped out. The team here agree that there has been a slowdown in price rises, but we don’t believe the market has topped out yet.

Lower than average growth

The figures track the growth to July 2015, and show that London itself had lower growth than the average for the rest of the UK. However, these figures come after a long sustained period of high growth for London as a whole, and we believe this reflects on the market taking time to adjust to the new reality of London property prices.

So while the London market catches its breath. We can take time to consider what the figures might show over the next 6 months.

Overseas investors

There has certainly been some volatility in the money markets for some overseas investors, how much this will impact the figures for the next six months remains to be seen. There are two schools of thought on this.

Volatility in overseas money markets could in fact make London look an even more attractive place to invest to those foreign investors looking for a safe haven away from their own countries volatility. However, wildly fluctuating markets rarely do investors’ confidence any good, and this could impact the London market in the longer term.

Longer term gain

While a temporary slowdown in the prime Central London market may not be a bad thing for some investors, it’s clear that many looking for more value for money are moving further afield, with the East of England now becoming a hot spot for property.

Those in the London market should always be considering the longer term gain, a temporary slowdown now won’t impact capital growth and rental returns in 10 to 20 years’ time. With all due respect to many commentators in the industry, we believe that a slow down isn’t a topping out, and Prime Central London property is still a good place to invest, with the right advice.

Experience Invest

Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments we’ve featured in The Telegraph newspaper and on Yahoo Finance. We specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.