The prime central London (PCL) property market is booming and outperforming the wider UK property market by some stretch, but what’s the secret to success?
1. Rising rents
A large proportion of PCL players are buy-to-let investors looking to capitalise on strong demand from overseas students, business people, and tourists. Demand from tenants continues to rebound from the pandemic slump, and Knight Frank reports that it sat at 26.7% above the five-year average in November.As a result, PCL rental values enjoyed a huge 17.8% rise in 2022.
2. Wealthy buyers and sellers
With some PCL properties selling for tens of millions of pounds, PCL buyers and sellers are less susceptible to changes that can impact the wider housing market such as higher energy prices.
3. Weaker pound
The weaker pound continues to draw in overseas interest – indeed, a whopping 57% of investment in London property came from foreign buyers in 2022!
Demand has been particularly strong from the US, with Black Brick noting that almost a third of the company’s 2022 transactions were completed with US buyers, over double the 12.5% recorded in 2021.
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