London property market: What you need to know

• Property value growth: The average house price in London currently sits at £629,400. Property price predictions suggest that the capital city’s market activity will be highly varied across different boroughs. In central London, high-end properties remain the most expensive. Central apartments and houses are expected to rise in price by at least 8% over the course of the year 2022. Outer London house prices are expected to inflate year on year by around 3.8% – a sustained level of growth will offer landlords and homebuyers stability in the next few years.

• Rise in rental costs: Monthly rent costs have steadily increased over the course of the 2020 pandemic and proceeding years. However, forecasts project a further 5.5% increase in rental prices for 2022 and beyond. Among the areas with the largest increases in rent costs are Kingston, Bexley, Newham, Croydon and Hillingdon.

• Increasing annual yields: In the top-performing boroughs of London, landlords can reap the benefits of climbing yields in the next couple of years. The average yield is 3.62%, sitting comfortably within the 3-5% average range across the nation. However, strategic planning and involvement in HMO investments could reward investors with a 5-6% yield in prime London postcodes.