Average London home 'to be worth £500,000 by 2020'
Published by Sarah Ashcroft
Homeowners in London are likely to find their property rises in value considerably over the coming years, while those yet to make their way on to the property ladder might find it becomes harder than ever to do so.
That is because the price of the average home in the capital is set to rise to £500,000 by 2020, according to the latest research by the Centre for Economics and Business Research. That figure is forecast to be £383,000 by the end of this year and more increases are due to occur over the next seven years.
In total, it means property values are likely to soar by 30 per cent between 2013 and 2020, which could price even more people out of buying their own home. High levels of immigration, improved links to emerging markets and expansion of the service sector will all contribute to London's booming property sector.
While the prospects for many other regions in the UK is not as bright, it seems those in London will find it tough to raise the funds required to invest in a first home. Of course, the likely result of this is that more and more people will be forced into rented accommodation.
This is good news for landlords, who will find an expanding pool of prospective tenants waiting to take up residency in their properties. Those with a solid portfolio stand to gain the most and some may even want to add to their selection of dwellings prior to the anticipated boom in prices.
Another factor in London's favour is that it has a relatively low reliance on the public sector, which is being subjected to significant funding cuts at the current time.
With all the trends and predictions considered, now could be deemed a good time to be a landlord in London. Not only should rental income be easy to secure in the years to come as more people are priced out of home ownership, the value of landlords' property is likely to be hiked.
Published on: March 6, 2013
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