By 2020 Average price of London property will be £1 million

By the end of the decade, the average price of a property in London could be an unbelievable £1 million according to Rightmove. For new sellers in London, the current price is £620,003 and the predictions are that this number is going to increase over to more than £1 million in the next four years.

During the summer, prices slowed down slightly but September saw them increase by 2.2% and this rise continued through to Christmas.

The current annual rate of increase is 9.5% and this is equivalent to £53,923 every year for those properties located within the M25 corridor. When the figures are scrutinised in this way it makes it more apparent that the £1 million prediction is not all that far away.

However, all of this is down to the market continuing to perform in the way it has been. Currently, there are no signs to suggest that it is going to slow down and the strength of the London property market is likely to increase as 2020 draws increasingly closer. Investment from overseas is expected to push prices forward and the supply of property in London is not likely to move in line with demand which is great news for those investing in property in the Capital.

All property is looking good

It is not only residential property investments that are looking rosy because commercial property is also in demand. This year is expected to be another good year with a number of developments moving along smoothly as they change the landscape of London.

There is a predicted rise of 6% of retail units and the submarkets are expected to see solid returns that could see them move ahead of the popular street locations throughout London. Industrial Estates with multi-let properties in the city as well as the south will benefit from new development rights that could lead to a change to residential units that will help with the high demand.

Throughout London, estate agents will be looking forward to what this year has in store for them, especially after the final quarter of 2015.

Is more investment needed?

All of this is still speculation but the figure shows that the housing market in London will face problems. There is a real need for more property in the capital to help take off the pressure of demand but current supply is not even scratching the surface.

Therefore, more investment is needed to deal with the imbalance. As more people are looking to move into London this means that the gulf between supply and demand could continue to grow. This shows that the London property market is not going to stop any time soon.

Author Bio

Fletcher Day are a full service commercial law firm, with a team of experienced commercial property lawyers in London specialising in acquisitions, corporate transactions and landlord and tenant matters.

About the Author