London has seen a transformation over 20 years, but the next 20 years should be even more dramatic. Taller buildings are to be expected in order to increase the number of central London residents. The international success of the city, combined with population pressure and a sharp increase in single person households, has created an urgent need to build more homes. The enormous increase in demand from tenants looking to rent property will continue to attract investor landlords.
London is a great place to buy and invest – prices are forecast to double in the next 15 years, a compound annual growth rate of 7% a year. Property transactions numbers will increase – homeowners are looking to cash in on their investment and new buyers are looking to secure property in a safe yet vibrant and lucrative market. The London population grew at twice the rate of the UK as a whole between 2011 and 2015, and could reach almost 10 million by 2025.
With demand for places to live is expected to outstrip supply over the coming decades, it’s no surprise that property investment in London continues to be so appealing. We expect an additional one million households to be renting by 2021, with the highest demand in London.
Transport upgrades and huge regeneration programmes across London have transformed previously ignored parts of the capital, changing the way we live. One in three residents now rent, while first-time buyers are facing a tenfold increase in costs. 1996 vs 2016 ARCHITECTURE Then: Developers and councils rarely hired outside architects to design homes. Now: A “starchitect” name or an up-and-coming practice is seen as an essential expense. SKYSCRAPERS Then: One Canada Square was London’s only real skyscraper. Now: The skyline has changed beyond recognition with additions such as the Shard, Heron Tower, the Cheesegrater and the Walkie-Talkie. There are 250 more towers in the pipeline. LUXURY Then: One Hyde Park had just been granted planning permission. Now: Homes at this most-prestigious address fetch record prices. The scheme upped the ante for other developers, who routinely add lavish health and leisure facilities.