How has the London property market performed over say, the last 10 years?
According to London Land survey statistics reveals that cost of homesin central London have almost doubled from 2000 to 2012.This increase of cost doesn’t affect the real estate London market.London consultancy firm, predict that the richest parts of London could see property prices fall, if the euro zone market collapses. Fathom’s firm survey, reveals that due to the imploding of single currency, the Pound would rise harshly against the other European currencies on the foreign exchange markets.At recent years the growth in real estate market is amazing and it will always be beneficial for the investor to invest for long term profit.
Land Registry statistics which track all sales in England and Wales show that house prices in central London have almost doubled between 1998 and 2006. This is on trend although the stronger growth was in 2005/6. This is an exciting indicator for future growth. Combined with net rental income, (i.e. income after running costs), the value of an investment would have grown by two and a half times. Capital growth has been on average 8.5% per annum with a potential return on equity invested (assuming a 70% gearing on the purchase price) of over 300%.
