The top-performing areas for best returns on property investment are situated just around the capital.
According to new research; the top three performing regions for property investments have been measured over the last five years, and the result concludes that these specific regions are all in or around London area.
Inner and Outer London were listed in the top three areas, followed by other regions near Greater London.
Increasing demand for rental property, as well as property value appreciation, which is relatively marked all over the capital have helped to achieve impressive investment returns in each of these great areas.
Since property prices in London have mounted to new highs over the last years, the demand for rental accommodations significantly boosted up. Increasing numbers of young professionals are now turning towards the rental market, and it helped create reliable and solid returns for landlord investors.
Moreover, investment in transport and other essential infrastructure means that more families and young professionals are now drawn to the idea of renting properties outside of Central London.
Large-scale projects like Crossrail and new cycle superhighways are meant to enhance accessibility to a lot of areas, and have since made London’s outer regions more appealing to the young professionals and families alike, that are working in or around the City.
The landlord holdings across Britain are now worth over £1 trillion, having grown by about £171 billion over the last few years. Additionally, there are around 5.6 million rental homes across Britain.
More and more people have seen the true value of investment in rental property. The demand of this scheme remains incredibly high and with interest rates as low as they are now, it’s quite hard to secure comparable returns with other kinds of investments.
Also, liberalisation of pension rules means more people nearing the retirement age are now considering property investments as it offers a reliable and steady income source.
The wide range of employment opportunities around the capital has also driven the growth in demand across London area, which in turn has improved investor returns.