Samir Salya on The Potential of London’s Property Market

While there’s no doubt that the London property market has been through tough times, there is still potential in the market that must not be overlooked.

The biggest worth

The London property market is the highest performing and valued area in the UK According to figures released by property evaluation company, Zoopla, the market is more than twice as valuable as the combined worth of property assets in the next nine largest cities and towns in the UK: Birmingham, Manchester, Leeds, Bristol, Reading, Edinburgh, Nottingham, Sheffield and Glasgow.

According to the report, London’s property market is now worth more than £1.5tn, an increase of 1.54% in the past 12 months.

In addition, recent data from HM Land Registry and the Office for National Statistics show that the London market is starting to show signs of a comeback. Despite poor figures being seen towards the end of 2017, 2018 is bringing renewed hope to the area.  In particular, price saw a rise by £4,000 in December compared with a drop of £6,000 the previous month. Although London is struggling to find stability, there is still a great deal of value to be found in the city.

Obstacles to overcome

Despite the strong figures for London property, Zoopla’s report goes on to note that its growth is not positive. Although its property market is twice as big as the other 9 biggest cities, these markets are showing positive and sustained growth. For example, Sheffield has recorded the highest growth rates of any British city, at 5.63%, followed by Glasgow at 5.38%. In comparison, London has only shown growth of 2.37% over the past 12 months.

Speaking in the report, Zoopla’s Lawrence Hall states: “However, the data does show that, in comparison to cities further north and across the Scottish border, the rate of growth in London has slowed. The capital may be worth almost 10 times more than Sheffield, but Britain’s Steel City wins in the growth rate stakes.”

As the market currently stands, London is not performing to the standard set by the city in previous years. Although it remains a high-value area, recent decreases in growth are following the decreases in interest in the city.

Until the uncertainty surrounding London’s future clears, the property market in the capital will continue to be unclear as well.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.