The property market is recovering in London with increasing rents sent to tempt more buy to let landlords back into the sector which could result in significant prices rises, according to the latest index report.
Rock bottom sales and rental stock levels are initiating a revitalisation of the London sales market, led by several boroughs such as Wandsworth, Hackney, Haringey, Hammersmith and Fulham, Southwark and Islington.
The Home.co.uk asking price index report says that these London boroughs are all showing double digit rent inflation, yields are soaring and, consequently, home prices are about to surge.
Overall, Greater London’s price correction is complete, it says. ‘All the top performing boroughs in the lettings market in terms of rent growth will soon translate into the top performing sales markets in London, as increasing numbers of investors spot the opportunity and capitalise on better yielding housing assets. Sales stock levels in the central London boroughs haven’t been this low for several years and prices look set to surge accordingly as demand picks up,’ said Doug Shephard, director at Home.co.uk.
He explained that both supply and residual sales stock levels have shrunk and this portends a return to price growth. Such is the rate at which yields are improving, the firm is predicting a wave of investment, commencing in the central boroughs and moving outwards, which will trigger breath taking growth in home values over the next 12 months and beyond.
https://www.propertywire.com/news/uk/property-market-set-to-turn-positive-in-london-says-latest-index-report/