Market Overview
The Global Default for Property Capital
London has over 9 million residents and absorbs roughly 100,000 new arrivals every year. The housing stock can't keep up. That structural undersupply is why London property prices have risen in 48 of the last 50 years, even through recessions and Brexit.
The average London home costs around £530,000. But averages are misleading here. A one-bed in Knightsbridge costs more than a four-bed in Stratford. Price per square foot swings from £400 in outer boroughs to north of £4,000 in Mayfair. Location dictates everything.
For international buyers, London is the market you know. English-speaking, common law, transparent land registry, and a legal system that protects property rights without exception. That's why sovereign wealth funds, family offices, and individual investors keep coming back.
Key Areas
Boroughs, Prices, and Rental Yields
| Area | Avg. Price | Yield | Notes |
|---|---|---|---|
| Mayfair / Knightsbridge | £2,000-4,000/sqft | 2-3% | Prime central London. Trophy addresses, embassies, private wealth. |
| Kensington / Chelsea | £1,500-3,000/sqft | 2-3% | Residential prestige. Period conversions and garden squares. |
| Canary Wharf | £800-1,200/sqft | 4-5% | Financial district. New-build towers, strong corporate tenant demand. |
| East London (Hackney, Stratford) | £600-900/sqft | 4-5% | Regeneration areas. Elizabeth Line boost. Rising fast. |
| Zone 3-4 (Battersea, Clapham, Brixton) | £400-700/sqft | 5-6% | Commuter belt. Best yields in Greater London. |
Prices based on 2024-2025 transaction data from Land Registry and Rightmove.
Investment Case
Why London Still Works
Legal Stability
English common law is the global standard for property rights. Contracts are enforceable, the land registry is public, and disputes go through courts that international investors trust. There's no equivalent elsewhere in Europe.
Rental Demand
London has 400,000+ university students and millions of young professionals who can't afford to buy. That creates a permanent rental floor. Vacancy rates in central London run below 2%. In Zone 3-4 areas, finding tenants takes days, not weeks.
Currency Play
GBP has been historically weak since 2016. For USD or AED buyers, London property is cheaper in real terms than it was a decade ago. If sterling recovers even partially, that's a built-in capital gain on top of rental income.
Regeneration Zones
East London, Battersea, and Old Oak Common are undergoing multi-billion-pound regeneration. The Elizabeth Line already added 5-15% to property values along its route. If you buy in the right postcode before infrastructure completes, the upside is significant.
Buyer Requirements
Costs, Tax, and Process
Anyone can buy property in England. There are no restrictions on foreign ownership. You don't need a visa or residency. But you do need a solicitor: all property transactions go through a legal conveyancing process. Expect 8-12 weeks from offer acceptance to completion.
A survey is strongly recommended, especially for older buildings. Freehold is ideal; leasehold is common for flats but comes with ground rent and service charges. Check the remaining lease term: anything under 80 years is a red flag.
Stamp Duty Land Tax (SDLT)
| Band | Rate |
|---|---|
| Up to £250,000 | 0% (3% surcharge for additional properties) |
| £250,001-£925,000 | 5% |
| £925,001-£1,500,000 | 10% |
| Above £1,500,000 | 12% |
| Non-UK resident surcharge | +2% on all bands |
Non-UK residents pay an extra 2% on top of standard SDLT rates. Budget for this.
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