Blog post
August 11, 2020

Property investment opportunities in London and The Home Counties

by Abigail Challen

Property investors have not needed a second invitation to invest in London in the past decade, with property prices and demand in the capital always increasing.

Looking forward London will remain an attractive proposition, but also recent changes to people’s work patterns and relaxed changes to planning permission and the stamp duty holiday will also be a boost for the market outside the M25. 

For example I’ve already seen a boost in client appetite in relating to planning changes which have meant old commercial buildings can be converted to residential and vacant buildings be allowed to be demolished and replaced with more energy-saving new builds. 

This could grow even further in a post-covid world where commercial space might be in less demand and the government wants to focus on building homes, creating opportunities for investors who find the right property. 

I have also noticed that the recent changes in stamp duty has helped boost the appetite even further.

Changing strategies

It is fair to say that the Covid-19 outbreak has made investors question their future investment strategies due to increased demand to work from home and live outside the commuter belt. 

Recent enquiries have certainly supported this and suggested that the outer suburbs and quieter lifestyle seems to be in high demand, this creates opportunities for Buy-to-Let landlords who want to expand their portfolios out of the capital and potentially get greater yields and also investors who want to acquire land for planning gain or development. 

Equally inside the capital the recent lockdown has shone a light on inadequate and insecure rental accommodation, which means going forward tenants will be looking to and expecting more from their properties, which favours professional landlords willing to put the work in. 

I personally feel that London will always have a high living demand and therefore I feel it is a great opportunity to invest as it goes back to basic supply and demand. London is one of the most resilient cities in the world as demonstrated from previous financial downturns. 

The long game

London investors tend to be in the investment game for the long run and seek capital growth. On average the yields you can achieve for the BTL market in London may not be as strong as the northern regions however there is still great opportunity to extend a property or split a property up into several different titles and therefore add value.

If you research hard enough you are still able to find excellent opportunities within the London market where you can gain both good yielding properties as well as excellent capital growth. As with anything, I feel knowing your market and sufficient research is key when investing and I continue to see good demand for both bridging and BTL within the London market. 

As previously mentioned I have already seen demand grow in the home counties as a result of lockdown and new remote working practices. Investors able to support this demand in The Home Counties will potentially reap the benefits, whilst the London market will maintain its familiar resilience. 

We have been spending time introducing you to our regional BDMs, so you can learn more about the opportunities in their area and connect with them. 

This week we’re talking to Abigail Challen, our BDM for London and The Home Counties. If you want to discuss a deal with her email: [email protected], or you can connect with her on LinkedIn or call her on +44 (0)7826 199 499.

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