London’s residential market is undergoing fundamental shifts. Aside from the froth created by an influx of high end overseas buyers, or government initiatives that make mortgage finance easier to find, moves are afoot to create a new professional, private rented market in London.
Why is this significant? Because for years, major investors in property decided that residential property investment was less profitable than other forms, such as buying office blocks or warehouses. And the UK was consigned to a fragmented market, dominated by small landlords and amateur buy-to-let entrants.
Now, in the same way as already happens in many other European and US markets, change is afoot. Major investors are looking at the market as a way to earn a long term, steady return.
For consumers, the idea of renting long term is a great way of dealing with some key issues in their lives:
* the ever more out of reach cost of buying – prices are too high for many people in real jobs, living in urban environments
* the need to be flexible and mobile, in an uncertain jobs market
* the idea of spending more on enjoying life, and less on material possessions such as a home, something previous generations were more attached to.
We’re watching these changes with interest….. and sharing what we see, with you.
Resimarketnews is prepared by Chris Bown.
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