If you follow news reports on the London property market, you will no doubt have seen some stories suggesting that the market is a bubble which is likely to burst soon. However, from our point of view, London’s investment property market is currently very healthy and shall continue to offer excellent opportunities for investors for quite some time to come.

Most of the concerns about the possible fall in value of London properties stems from the rapid nature of the rise. Between 2005 and 2015, the average price of a property in London rose from around £233,000 to just over £456,000. It is quite remarkable for the average price to effectively double within a decade, and in a sense we can understand the concern that the average value may be likely to fall just as quickly. Based on what’s happening in the market, this is extremely unlikely to happen.

The increased value of London property was not of a nature that could be sustained. What has been sustained, however, is growth. While the large jumps no longer happen, values are still going up on a year to year basis. Although the values are not increasing at the rates once experienced, the level of increase still reflects a significant return on investment.

Consideration should also be given to the fact that demand for property in London is not showing any signs of slowing down. So long as there is demand for property, so too will value increase. The slower growth rate of value does, however, make long term returns more attractive. For over a decade, our guaranteed rent, property services and estate management in Barnet and the rest of London have helped investors get the best returns possible on their property.

As you can see, the drop off in the rapid growth of values in the London property market should not be seen as a sign that values are falling. This is far from the case. Demand for living space in the capital is on the increase, and that means profit is there to be made by property investors.