Despite currently facing Brexit woes and a slumping market, London ranks as the most lucrative investment hotspot in the U.K. over the past decade, according to a report today from Benham and Reeves.
Since the end of the recession in 2009, house prices in London have increased 86%, to an average of £472,901 (US$627,144) in November 2018 from £253,596 in June 2009, the sale and lettings agents said.
London’s inner boroughs are driving the growth, with prices up 94% in the same time, compared to 88% across outer London.
Across the U.K., average prices have seen bumps of 45%, from £230,630 to £159,561.
“Much has been made about the demise of London since the EU Referendum and the resulting slowdown in house price growth, attributed largely to a withdrawal of foreign interest and investment,” Marc von Grundherr, director of Benham and Reeves, said in the report. “However, London remains the pillar of the U.K. property market and the ultimate jewel in the crown for both native and foreign investors. In fact, the number of EU residents buying in London alone is up from 10% in 2015 to 14% in 2018.”
“Those finding themselves in a Brexit-based limbo with regards to buying should rest assured that when the capital does resume business after a brief political respite, its market pedigree will help ensure continued price growth,” Mr. von Grundherr said.
In fact, Benham and Reeves predicts that future home buyers in London could be paying over £4 million for their first homes by 2052, Mansion Global previously reported.
Outside of London, the popular commuter regions of the East of England and the South East have logged the highest price growth of the past decade, up 69% and 62%, respectively.
Only in Northern Ireland have prices yet to recover, still down 5% on pre-recession levels, the report said.