While the London property market is being impacted heavily by COVID-19 in the short-term, it could present a long-term opportunity. Fraser Slate, the Chief Executive of buying agency Ludgrove Property, suggests that the London Prime property market could be particularly attractive as a long-term investment.
One advantage of investing in property now is that mortgages are at an all-time low. The British Pound is currently weak against the US dollar, making property investments in London more attractive for overseas buyers, particularly those in the United States.
Some of the best opportunities for buyers looking to invest in Prime London property will be bulk buyers looking for residential blocks. Buy these blocks from distressed developers who need to sell the properties to stay afloat. Professional investors remain active and are making investments across the board even now. This is a great chance to gain exposure and buy property off the market as a safer long-term investment.
One way the market has been affected is that people can no longer conduct physical viewings. While some people have adopted virtual viewings, the Central London property market as a whole has frozen. There aren’t enough transactions taking place right now to get an accurate picture of where the market currently stands and how things are.
Low volume markets are known for being skittish. These markets are also unreliable, which makes it difficult to get an accurate reading of prices. We could have to wait until the autumn for a reliable picture of the current state of the property market. For now, though, any weaknesses in the market – such as what is happening right now – should be considered the perfect chance to buy property as an investment.
No market is immune to what is happening, including the Prime Central London property market. There are sure to be some weaknesses in the market across the short-term. With that said, the current situation does present an excellent long-term buying opportunity. Properties being sold right now make for an excellent investment for the patient investor.
Central London was enjoying a bear market and a steady recovery before the lockdown began. This environment is not one suited to sustained price drops. It will be a matter of time before the market starts to recover again, and prices start to rise again.
Slate does offer one word of warning to investors, though; not any London property will do. More mainstream London property relies heavily on people using schemes such as Help to Buy to get their first home. First-home buyers also use high LTV mortgages to purchase a property. These mortgages are being withdrawn, so the chances of mainstream property recovering as quickly as prime property, and selling for as much, are low.