What Increases the Property Price in London?

What Increases the Property Price in London?

It’s a well-known fact that London has one of the fastest-growing housing industries in the whole world. Although, many people just seem to accept this fact, and not question the reasons behind why

this phenomenon has occurred.  

Compared to other cities, especially in the UK, the prices of properties in London seem to have been going up exponentially for the past decade or so, and there are plethora of reasons why this is the case.

In this article, we will be delving into the topic of what exactly causes the rapidly increasing prices of the properties in London, as well as what this means for future investors or homeowners.  

Scarcity of Homes Paired with an Increasing London Population  

It's no secret that London has one of the largest populations out of any other location in the UK. When you pair this fact with the low availability of homes throughout most London areas, it leads to extremely high demand but low supply. 

This means that it's usually the landlords who have all the power, and people are just happy with anything they can get their hands on. 

Of course, landlords are always looking to get the highest returns on their investment possible, so usually, London properties end up going on the higher-end of the scale. 

In turn, other people will see that said property just sold for over its asking price, and slowly but surely, everyone raises their prices to that amount and it becomes the new norm.  

This begins the cycle that has encapsulated London for years. People are willing to overspend for something that they are not even fully happy with just to get their hands on a property in London, then the prices raise, and so on.  

This cycle becomes even more vicious when you factor in the increasing population in London, with more and more people looking to find any property available.  

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There’s a High Price for Living in the Capital of the UK  

One of the more obvious factors that cause the prices of properties to increase in London, but one that is often overlooked, is the fact that London is the capital of the UK and has access to a variety of perks that no other locations do.  

There’s an extensive list of unique locations; Big Ben, Westminster, the London Eye, and that’s even without mentioning that the currently reigning monarch is situated in London.  

When one factor in all of the above-mentioned points, it begins to become obvious why the property prices in London are so high and continuously raising.  

London has a wide array of diverse sites to see, activities to do, and overall, is just one of the most bustling cities in the world. Of course, everyone wants to get in on the action and be surrounded by such great things, and this draws a plethora of people towards moving to London. 

As you would guess, this leads to the prices of properties raising because of what we touched upon in the last section; low supply, high demand. 

Not only are London residents looking to move homes in London, but people from all over the UK, as well as the world as a whole, have London as their ideal moving location.  



Everyone seems to share the common knowledge and understanding that the prices of London's Properties are continually rising, but only a small percentage of those people understand the reasons why that is the case.  

Although, that is to their detriment alone.  

By understanding the underlying causes of why London's real estate market is drastically increasing, we can better predict how things are going to happen going forward, and make more informed decisions about if buying a property in London is a good choice or not. 

If you are looking into purchasing a property in London, or the UK as a whole, feel free to have a browse throughout our website. At TRPE – The Real Property Experts, we have all the latest listings on the market up for grabs, and our expert team can give you professional advice on how to make the best decisions for you. Our team also provides you with the in-depth knowledge of the market to help you find the right seller or buyer of property in London.

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