Real Estate Investor Magazine South Africa November 2014 | Page 60

UK PROPERTY

BY MIKE SMUTS

London’s Housing

Fundamentals
A market like no other

L

ondon’s property market is like no other in the
world. It moves faster and vastly differs from
street to street. There isn’t one London housing
market, but a myriad of markets. These respond to a
variety of factors; from factory and office closures to
the pulling power of nearby schools.
The local market will directly affect the type of
tenant you attract, your rental return and the level of
capital appreciation you can expect, so it’s the most
important element to get right.
There are four fundamentals you can employ to find
the right location for your London investment.
1. Public transport
Unlike South Africa, car ownership in London is a
luxury for most. Many Londoners rely on the public
transport system and pay a premium to be within
walking distance from a station.
In a research note published last month by Nationwide,
one of the UK’s largest mortgage providers, found
living within 500m of a public transport station added
£42,000 to the value of a property in London.
To ensure your property appeals to a large market
of potential tenants, it is essential you invest in an area
with good public transport.
2. Public amenities
Londoners don’t do large monthly shops for groceries–
it’s a pain to lug them home on the bus or Tube. It’s
more convenient to pop into a shop on your way home
and get a few items for dinner, grab a take-away, or eat
in a restaurant.
Your tenants will want easy access to shops,
restaurants and bars. Keep in mind, if your local rental
pool consists of families, they will shun noisy high
streets in favour of parks, libraries and leisure centres.
3. Education
In London, competition is fierce for places [