Buying property to let in London could be a smart investment once again, so says a
report in Mansion Global quoting a number of London property experts.
The article says that a
combination of depleting supply due to landlords selling up and an upswing in
demand from tenants who can’t afford to buy – combined with stalled purchase
prices and rising rents – has created an opportunity for investors looking to
enter the market or expand their portfolios. The article suggests that
softening prices have to some extent ameliorated the impact of reduced tax
allowances for landlords.
The article quotes Catherine Westerling, National Head of Lettings at Hamptons International, who suggests future prospects for price appreciation are favourable: “An investor looking for capital gain will do well. London property will typically outperform any asset class over a 10-year period. It’s a safe proposition if you’re taking a medium-to-long look.”
Property markets are, of course, historically cyclical so after a period of boom followed by a period of slump a window of opportunity was, or is, always likely to follow at some stage. So is the time now right to jump back into the market? Time, as they say, will tell.
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