According to this article by WebWire on September 22th, 2013 the reason that the property capital market in London continue to boosts is because of the population growth.
London population growth boosts the property market. We investigate
London areas of high capital growth. Which are good areas for London
property investment?
How to make a good property investment by looking at supply and demand? Inward migration.
By the middle of 2012, the London population clicked over 8,308,000
inhabitants according to the office of National Statistics. The probably
reason for the steady increase is the positive birth of 134,000 babies
in the Capital. By contrast, the mortality rate was markedly lower at
47,570 fatalities in London during the same period.
Net migration added a further 69,000 people which was calculated from
176,000 arrivals from overseas subtracted by 107,000 departures.
Additionally, there are U.K residents that move to the Capital for work
and some older residents move to the countryside when they retire. More
U.K residents are moving to London and the South East in general as The
North still struggles with slow growth and high unemployment.
The growth in the London population is not matched by the number of new
homes being built. The target of 250,000 new homes has been missed for
several years further exhibiting the housing crisis. Even though there
was an improvement on the previous years’ new builds with 115,000 new
property completions.
Areas like Hackney and Islington have quite a number of Turkish and
afro-Caribbean families that generally have larger families and have
contributed to positive population growth rates. Islington is an
excellent place for London Investment Property with exceptional rental demand because it is close to both ‘The City’ and West End.
Wandsworth is another London borough that has benefited from the baby
boom as it fits within (what is commonly known as) the ‘Nappy Valley’
where newly-wed city workers are starting their families. It is also in
the catchment area of Chelsea, Fulham and the Nine Elms project near
Battersea which are all extremely popular with overseas buyers.
Wandsworth experienced year on year Capital growth of 11%.
Making money from property investment is not rocket science. A large
contributor to creating a successful property portfolio is seeking out
areas with an imbalance in supply and demand.
It really is quite simple, where there strong demand for rentals and
there are few rental properties would result in higher rents and lower
vacancy rates. Where there is shortage of properties for sale and large
demand for properties results in price rises.
If we take Canterbury for instance there are 149,000 inhabitants and
46,000 student’s means that there is a lot of completion and demand for
properties, the rents are high which makes for good investments and
therefore demand for properties. It is a small Cathedral City with
limited planning which restricts supply resulting in a 60% price rise
that we have seen over the past 10 years.
‘Student migration now constitutes the largest category of migration to
the UK. The student property market cannot be ignored…it is generating
impressive returns; investment rental property in Canterbury has 9% rental income’ says Arran Kerkvliet director of One Touch Property Investment.
The future looks bright for the student property market because the
number of student applications continues to exceed available places. In
June 2013, the UCAS figures confirm that the number of applications
increased by 3.1% over the previous year.
In fact, the British Council predicts that over 8 Million students will study outside of their country of birth by 2025.
Article Source: http://www.webwire.com/ViewPressRel.asp?aId=180419#.Uj-dWD_tYh8
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