Low wages, high rent and a demand for properties. Can London get out of a period of slow growth in property prices?
A recent report from credit ratings agency, Moody’s, predicted that housing prices will surge.
The capital is set to be hit the hardest, and is expected to rise by at least 24% over the next 5 years, the report claims. On average a property in Greater London will cost £620,000.
UBS research found London has the most overpriced housing market in the world with foreign investors making up 54% of all brought properties in the capital.
MIPIM UK, a marketplace for property professionals, sees 4500 participants come together from 35 cities for one exhibition.
One of the speakers at the MIPIM UK 2015 event was Mayor Boris Johnson, whose plan was to build ‘thousands of homes’ for Londoners who help ‘make’ this city work.
The FIRST STEPS programme, which sees residents on lower incomes get onto the property ladder. The project has already delivered over 30,000 immediate homes to an estimated 44,000 Londoners, since 2012.
London’s economy continues to grow but with low wages and unemployment rates London has become a city for foreign investors. The increase of London house prices grew by 4% in the last year while the average private sector rents in London increased to 3.2%. Has the capital just become a city for the rich and wealthy pushing the low incomers out?
Graduate multimedia journalist and contributing writer at Culturefly