London house prices and rents are set to rise in the future due to supply not meeting demand in the British capital. This was revealed in the report ‘Renting in London:the coming boom’ written by Professor Michael Ball of the University of Reading for Cluttons which claimed that although market cycles may affect yearly returns “income yields are expected to rise significant additional capital returns.” More than 8 million people live within the boundaries of the city, and according to the report the private rented sector is the most “dynamic” part of the housing market in London.
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London is one of the richest and most expensive cities in the world, especially in high end neighbourhoods where residential rents and prices double those of the rest of the Britain. Although these expensive areas of London traditionally were in the west and beyond, now building in the east and north east of London over the past three decades had led to a book in new developments such as in Docklands. Nevertheless housing stock kin London has risen only at 0.7 per cent a year. But forecasts predict a large and growing deficit of housing stocks in London, with household numbers set to rise annually by 34,000-38,000 until 2028, according to the report. Yet based on housing stock growth figures for London between 2000 to 2011 suggest supply would be limited to about 21,000 annually, resulting in this significant shortage. With 880,000 properties, London has the most ‘renters’ in Britain, a figure which has doubled in the past two decades in line with demand for housing in the capital. In fact, almost two thirds of households rent in inner London (40% in outer London). Lynn Hilton, at Cluttons said that new jobs being created in London are increasingly for well paid and highly qualified staff. “Those tenants in the higher income groups, including families, will be a growing component of the rental market, seeking good quality accommodation over longer periods. The pressure of demand from tenants wanting to live in the city will underpin rental growth at a level ahead of the historic long term trend.' But it isn’t just London’s rental market which is set for a boom, it seems foreign interest in the capital’s luxury property market is also on the rise. Housing prices in London are also expected to rise in 2013 and 2014 in line with stronger economic growth, according to the report. Edward Fairless, Managing Director of Butterfly Residential, a leading luxury property company with several prime properties for sale in London, Marbella and Barbados said: “London’s luxury property market has been steadily outperforming New York, Paris and Hong Kong.” A recent article in The Guardian revealed that there are now more than 10,000 multimillionaires in the UK with a combined wealth of over one trillion US dollars. “Of these 4,220 live in London - more than can be found in the whole of France,” adds Edward Fairless. The Financial Times recently reported on “demand from European and Asian buyers seeking safe investments away from turbulent Eurozone economies.”
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Butterfly Residential is a boutique, professional, high-end property company specialising exclusively in sales and rental of luxury property in Marbella, London and Barbados. The team at Butterfly Residential is headed by Edward Fairless and Nicola Fairless, a brother and sister team who have become the new sensation in the global luxury property sector.
Butterfly Residential are market leaders in the luxury real estate sector with exclusive properties for sale and luxury properties for rent in some of the finest locations across the world.