- GCC investors to capitalise on new build developments with high rental returns
- Regeneration and capital growth underscoring the ongoing demand for London property, according to Barratt London
- Positive outlook for the London property market as Barratt London to announce several new projects in 2025
Dubai, United Arab Emirates, 20 February 2025: Barratt London, a leading residential developer in the UK’s capital with more than 40 years of experience creating new homes in the most up-and-coming areas of London, has highlighted the continued demand for property in the capital from international investors, despite changes in the political and economic landscape with new governments in both the UK and the US.
Inflation is significantly lower than its peak of 11% in 2022 at 3% in January 2025, while the Bank of England Governor, Andrew Bailey, has indicated potential interest rate cuts, making mortgage borrowing more affordable in the longer term.
While the Bank is unlikely to cut again next month it is still expected to push through another two interest rate cuts this year, with EY forecasting UK mortgage lending growth to more than double to 3.1% (net) in 2025.
With these positive economic indicators, London continues to be an attractive investment hub for GCC investors keen to capitalise on the high rental demand and positive returns, as, according to London real estate agents Foxtons, there are currently 23 tenants vying for every available property, which is compounded by rental yields exceeding 6% in select areas.
Although the double-digit rental increases of the past two years have subsided, average rental prices in London, as per Zoopla’s December 2024 Rental Market Report, have remained robust at £2,148 (AED 9,754) per month, significantly higher than the UK-wide average of £1,213 (AED 5,508). However, while rental demand remains strong, the report outlined that available rental properties in London have declined by approximately 25% since 2019 due to landlords exiting the market due to the emergence of energy efficiency regulations that are costly for older properties to comply with but, in contrast, are standard for modern new builds.
According to Stuart Leslie, International Sales and Marketing Director at Barratt London, investors need to consider these regulations, rental income, as well as the potential for positive capital growth in addition to rental income.
He said: “With UK house prices reaching record levels following a surge of 1.3% in a single month, annual gains of around 5% are not unrealistic. We have seen Savills upgrade its five-year UK forecast for average house price growth from 17.9% to 21.6%, but it pays to choose your property and location with care to see optimum gains.
“Barratt London is known for choosing its new developments in areas being regenerated, revitalised, and served by excellent public transport and other amenities, in addition to meeting new energy efficient mandates. As a result, capital growth in many of these areas has been extraordinary – with the expectation of more to come.”
Barratt London’s recently launched Investment Portfolio highlighted that Springfield Place, where Barratt London is building new apartments and houses near a 32-acre park in South West London, has seen a 58% price growth in the last decade. In addition, at Hendon Waterside, next to the Welsh Harp reservoir in North London, property prices are projected to increase by 42% in the next five years, while a 29% house price growth at Sterling Place in South West London is anticipated during the same time frame.
The company’s focus on regeneration areas is also contributing to above-average growth with areas such as Brent Cross, close to Barratt London’s Hendon Waterside development, and Acton, home of Barrat London’s Royal Gateway development and a brand-new development of 900 homes at Bollo Lane, as being up-and-coming property hotspots, where buyers look set to see more significant gains.
With favourable rates and anticipated demand from investors, Barrat London will launch several new developments in 2025, adding significantly to its existing portfolio. At its landmark Hendon Waterside development, an exclusive collection of five and four-bedroom townhouses has recently been launched and is available to move in from the summer of 2025.
In South West London, the upcoming launch of The Lanes will add 449 new homes at Springfield Village, linking Tooting Bec and Earlsfield and forming part of a major regeneration in Wandsworth. In Canning Town, Barratt London is bringing 871 homes conveniently located to Canary Wharf’s international business and finance centre.
Permission has also been granted for 260 new homes at Sydenham in the London Borough of Lewisham, a thriving property hotspot in South East London. In up-and-coming Acton, its Bollo Lane development will bring 900 new apartments to the area, working in conjunction with Transport for London (TfL) to make use of redundant TfL land by Acton Town Station.
“Developments on this scale demonstrate our confidence in both the UK economy and in the enduring popularity of London city life, which is epitomised by excellent transport links, world-class education facilities, a strong social scene and a dynamic working environment,” added Leslie.
For more information, visit www.barrattlondon.com
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NOTES TO EDITORS
About Barratt London (International)
Barratt London has been building high-quality homes in the UK capital for more than 40 years. A division of Barratt Developments – the UK’s largest housebuilder – Barratt London has already completed more than 50,000 homes in the city and invested £137m in the past three years.
With a wide range of homes available across London, the company specialises in seeking out regeneration areas with high rental yields and great transport links, including sites in partnership with Transport for London, where it can build sustainable developments and create thriving communities. Multi-award-winning Barratt London has a satisfaction rate of more than 90%, better than any other major UK housebuilder.