London homes are a real goldmine
A recent survey by Halifax, reveals the real reason behind investing in London property and why it is the most lucrative business to date.
According to the latest figures, London homes ‘earned’ almost twice as much as their owners over the past five years.
The research found that a fifth of local areas in the UK saw average house prices increase by more than total average pay, with nine of the top 10 areas in London. To be specific, London homes made as much as £117,000 more than the people who live in them over the past five years, based on the Halifax report.
For example, Croydon was ranked 6th on the list of top London neighbourhoods for landlord investment. It came sixth with a difference of £27,386 between property price growth and wages.
“Despite the slowdown in house price growth in southern England, it has still outpaced wages across most of the region,” said Russell Galley, managing director at Halifax. Galley underlined that the data suggests that middle earners are facing challenges getting on to the property ladder.
The report concludes on a positive note since the forecasted house price stabilisation and the employment rising in the UK will further stimulate the housing market, inviting new individuals to become landlords and homeowners.
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