Is London still the property investment hotspot of the UK?

 
Is London still the property investment hotspot of the UK? Apparently so

It's no secret that the property market in London has been red hot for a number of years now, but while it has been the hotspot for investors looking to get the most for their money, there have been rumblings in recent times that the market in the capital was set to overheat. 

On top of this, with regional property prices starting to grow and improve, and having room for further growth with them still sitting six per cent below peaks according to Rightmove, many investors may be turning their eye to investments away from the capital.

According to one investment expert, however, this may not be the wisest move, as he advised that London is still the best place in which to buy to make the best returns on investment in the long run. 

Richard Kirby, manager of the £1 billion F&C Commercial Property Trust, said his company expects that London and the south-east will continue to outperform the regions moving forward, with only growth in commercial property - and particularly retail - likely to buck this trend. 

He added that the biggest market for investment in London is the rental sector, with tenant demand remaining consistently high at the moment, and more and more people looking to get themselves a place to live in the capital.

This has been boosted by the growth in business sentiment across the UK, which has seen a greater number of companies able to take people on, increase wages and generally improve the financial situation of the average Brit. 

And with a leader in the property trust market now advising people to invest in the capital, could it lead to a rise in a new arm of the rental sector?

The institutional private rented sector is something that the government is keen to bring in to the market to help meet with demands, and it has even provided funds to make it happen through the build to rent scheme. 

Institutional investment in the private rented market works by having companies by buying brand new properties for the express reason of letting them to tenants, and they work with management companies to run their buildings and make sure everything goes smoothly. 

It could help with demand in the sector and mean rental price increases being kept under control for the next few years.