London

United Kingdom

One of the world’s most recognisable and iconic cities, England’s vibrant capital is truly international, attracting visitors and businesses from all corners of the globe.

London’s grandeur and rich history is written in its streets, from Westminster to Buckingham Palace. And today, it is abuzz with contemporary art, culture, and innovation. This is just a fraction of what draws people to London, a region that has been named the world’s most “magnetic” city for the 10th year in a row. Stealing the top spot of the Global Power City Index, London ranked higher than stellar cities like New York, Tokyo, and Paris.

More than 300 different languages are spoken daily in London, and over 50% of investors in London Stock Exchange companies are international.

Another major feature of the city is its connectivity. Six major airports, including Gatwick, Heathrow, and Stansted, link London to destinations across the globe, facilitating high levels of visitor activity.

Tourism plays a central role in London’s economy, supporting an astonishing one in seven jobs in the capital, and contributing to nearly 12 per cent of the city’s GDP. 21 million visitors took a trip to London pre-pandemic, spending a total of £2,104 million. As an iconic location, rich in history and identity, it is unsurprising that tourist activity in London is on a rapid route to recovery following the post-pandemic lifting of travel restrictions.

Many famous annual events bring visitors and residents together in celebration. The London Marathon, Notting Hill Carnival, London Film Festival, and London Fashion Week are just a few. The city also puts on a show for New Year’s Eve, with its famed firework display over the Thames.

London is all set to become a ‘Megacity’ by 2030 with its population expected to reach 10 million. Its current population sits at around 9.5 million, and properties are in short supply. Subsequently, the capital is experiencing an extremely high demand for properties as the tenant population surges and more and more people choose to set up home in the city. While property prices are increasing steadily in comparison to other UK markets, asking rents are meeting record prices.

Many people flock to London due to its esteemed position as a global business hub. In The Global Financial Centres Index of 2022, London stands as one of the leaders of global trade and foreign exchange markets, ranking second after New York as a leading financial centre. Home to some of the world’s most established businesses, rising star companies, and innovative start-ups, London is brimming with career opportunities and offers a strong base for companies of all kinds.

Our experts say

“The London property market is one of the most coveted investment markets in the world. Demand for prime London locations is growing and homes are selling almost as quickly as they become available. Prices for prime London property are up by 4.2% year-on-year and recently posted their biggest quarterly gains in over eight years.

Furthermore, prices remain 18.2% less than they were in the 2014 peak of market, which presents a very strong buying opportunity for investors looking to park wealth in a stable market. We also see huge opportunity for investors holding USD where currently the GBP is trading at historical lows.”

Matt Lavin, Director

How to get there

By road

The M6 is the UK’s longest motorway, running north to south from London to Leeds. Known as London’s orbital motorway, the M25 is a 117-mile road that loops round the entirety of London in a clockwise direction. You also have the M4 to your west, which links motorists to southern England and Wales; the M11 to the east, which will take you into Essex, and the M3 which is your main route to the south coast.

By train

Numerous principal, regional and local rail routes run in and out of London to locatons across the UK. HS2, Britain’s new high speed rail line, is also being built from London to the North West, connecting the capital to Scotland, Manchester and Birmingham. And for those further afield, the Eurostar connects London to continental Europe, enabling Londoners to reach Brussels in just two hours and Paris in under two and a half hours.

By air

London is extremely well-connected by air, home to several major airports including Heathrow, Gatwick, Luton, London City and Stansted. Millions are invested in the UK’s air space every year, facilitating high levels of visitor activity. As London’s largest airport, Heathrow transports over 80.1 million passengers annually to 84 countries across the globe.

By boat

The ferry is another great way to travel to London if you’re coming from continental Europe, Ireland, or elsewhere in the UK. It is not far from the country’s east, south and south-east coasts, so ports are relatively accessible. In just 90 minutes you can take the Calais-to-Dover route, which is the quickest crossing to Europe.

Weather

Loctaed in the south, London enjoys a relatively milder climate than other parts of the UK and an average of 1,400 hours of sunshine a year.

Spring/Summer

Although summers in London are typically mild, the city has been recently known to experience temperatures exceeding 30 degrees celsius. Urban heat island effects mean that temperatures are slighly higher in London than in the surrounding and more rural areas of the UK.

Autumn/Winter

Winter is moderately cold, although temperatures don’t commonly fall below freezing; January sees an average temperature of around 6 degrees celsius. The city also experiences frequent rainfall, although this usually takes the form of a drizzle or shower.

Why invest

With investment coming in from across the globe, London is a business and economic capital of the world. It has a free and open market, and London property is considered one of the most stable investment options in the UK.

As a centre for businesses and education, London regularly benefits from a strong influx of new vistors, students and professionals into the city. Over one million businesses have a base in London, and the city also has the UK’s largest student population with hundreds of thousands of students spread across 18 universities.

Shortage of supply and a growing population is leading to increased demand. With a growing tenant population, average asking rents are breaking records across the region. The city has recently been in the spotlight for widespread bidding wars on rental properties, which is naturally pushing prices up even further.

London’s luxury homes attract attention from both domestic buyers and overseas investors from around the world. Properties exceeding a value of £10m were being snapped up in the first half of 2022, revealing that cash-rich investors are hungry for a home in England’s long-standing capital.

House prices are also heading on a steady upward trajectory, increasing by 8.2% in 2022. Prime central london also recently experienced its highest growth rate since September 2014. While below the UK average growth rate, experts predict that property prices will continue to rise in the upcoming years. Moreover, house prices are a long way off their most recent peak, and this room for growth creates a lot of opportunity for investors.

In their report on prime London house prices Q2 2022, Savills forecast that prices in prime central London will grow by 23.9 per cent over the next five years; all prime London was estimated at 18.9 per cent, and outer prime at 13.7 per cent.

Leading real estate consultancy, Knight Frank, has forecast that rental values will increase by 22.7 per cent in prime central London and 19.3 per cent in prime outer London over the same five-year period.

With low interest rates, rising rental yields, and robust capital appreciation, England’s diverse and prosperous capital makes a great investment option for both domestic and overseas buyers.