High net worth individuals target homes in various locations. Some want residences they can use when they visit the areas. Others are looking purely at investments that could pay off with nice returns in the future. London is one of the most popular locations, as well as Miami, LA, Dubai, and the Côte d’Azur. It could be in for a very good 2024. We want to have a look at this today, then if you need guaranteed rent in London, we can help.

Supplies

One of the major reasons this year could be a bumper one for the prime market in London is a looming shortage of properties. The situation is quite good at the moment, particularly with several new landmark developments completing and releasing fresh properties. However, the pipeline is running dry. There are very few other projects in progress. Changes to the planning regulations also limit the opportunities for new developments. Plus, land availability is a big issue, especially in the prime locations.

The situation with the supplies is leading some experts to predict that prime properties will be sold out within the next five years. So, investors should act sooner rather than later if they want to buy in London. They could find that it is increasingly harder to find the right properties from the second half of 2024 onwards.

Rising prices

Many high net worth buyers have been nervous to commit to deals in the last few years because of price escalation. There was a big wave of interest and demand post-covid. It pushed prices up and made other prime locations more attractive. However, there has been cooling in 2023. So, now is a good time to invest and take advantage of potential savings. In fact, some sellers are still willing to offer healthy discounts on asking prices to secure sales.

However, there is also a small window here. The expectation is that prices could start to rise again later in 2024. The trigger for this will be the lack of supply and looming shortage. So, investors may want to act sooner to get the best prices. They can then come to us for help with guaranteed rent in London.

General election

Another thing that could have a major impact on the prime market is a change in the political landscape. The UK is due a General Election. It could happen as early as May/June or as late as October.

The big thing here is if the Labour Party wins the election and takes control of the government. If that happens they are likely to introduce changes in stamp duty and land tax. They could make it far more costly to purchase prime properties. Overseas investors could see the biggest increase in costs.

So, it may be best for investors to commit to deals before the election. This way they can get them over the line before any potential changes can come in.

Renting

Finally, 2023 was a strong year for the prime residential rental market in London. Figures show there was a surge in activity, pushing it well above pre-pandemic levels. Part of this was the city reclaiming its place as one of the top financial destinations in the world.

Experts are predicting that rents will continue to rise in the next few years. In fact, they could increase by 18.7% by 2027. So, there could be even more reason for investors to commit to putting their money into prime properties.

Do you want help with guaranteed rent in London?

As you can see, many different factors could lead to a lot of activity in the prime market in London this year. If you are thinking of investing, it is a good idea to ensure you have the right help. Many sales are done off-market, especially with overseas investors. Therefore, it can be really useful to have experts in the city who can find properties.

You can also call on us if you need help with investing and guaranteed rent in London. The latter can be a really good way to ensure you can get a nice yield for properties. It takes away the stress of finding tenants. If you want to learn more, you can contact us.