We take a closer look at how London compares to the rest of the UK in terms of property investment returns on investment, house prices and other economic factors.

London is in a category of its own in pretty much every regard. When compared to the rest of the UK, it trumps every other city in terms of population, racial and linguistic diversity, economic size and public transport. However, it is also the place with the most prolific drug use, biggest wage disparity and highest living cost in the UK.

Whatever your opinion of the capital, it is a bustling city with big opportunities for property investors. For those who want to get into the London property scene, or are perhaps curious about investing in other cities, we’ve created a quick guide to London vs other major cities in the UK in terms of economic performance and other stats. Read on to find out how the Big Smoke measures up.

Population Demographics

One of the most visited cities in the world, London is by a mile the most populous city in the UK, with the current number of residents estimated to be just under 9 million in 2019, representing an escalated growth rate of 1.76% compared to 7 years ago, and 6 million more than the UK’s Second cities of Manchester and Birmingham, each of which is home to fewer than 3 million people.

To put it another way, around 13% of all the UK’s residents live in London, although the area it covers accounts for less than 1% of all the country’s land.

House Prices

What with the rising population and the fact that the banks essentially made new money before the 2008 financial crisis, houses are in high demand in London – and they’re on average more expensive than in any other city in the UK. As a result of this, London is the only city in the UK where more people rent their homes than own them.

As of June 2019, the average price of a house in London was £457,000; to put that into perspective, in Northern Ireland it was £135,000. The average house price in the UK is £230,292.

Return on Investments

With a population increase that shows no sign of slowing down and house prices through the roof, it’s no surprise that more and more people are turning to rental properties to find somewhere affordable to live. This is great news for property investors: once you own the property, you can expect to gain a reasonable, long term income from renting it out.

The exact ROI of renting out a property you own depends on the desirability of the area in which you buy, but tends to yield at a steady rate of between 3.5 and 4.5% annually.

If you’re interested in property investment in London, get in touch with one of our friendly team today for a consultation on where to begin, and which project might suit your requirements.