Not only does it offer a wealth of job opportunities in a range of industries, but it boasts some of the world’s top cultural attractions, so it’s no surprise that London was voted the place where most people in the world want to work, beating New York and Paris in a recent survey by The Guardian 1.
London’s charms are manifold and with rents rising 3.4% in the last year to an average of £2,045 in August 2, the city still has many up-and-coming property hotspots that offer an attractive, ongoing income.
Who lives there?
With a population of 8.6million, an increase of 12% since 2001 3, the metropolis is already Europe’s largest city and the 6th richest place on Earth.
As a proportion of the population, there are over twice as many 25 to 29 year olds in Inner London than in the rest of England 4, representative of a youthful workforce who have been attracted to the city by employment prospects.
With London being the dominating city in the UK’s economy and the home of key industries and institutions, the capital shows no sign of losing its momentum.
London spans over an area of 1,572 square km with a population density of 5,491 people per square km. The population is also a learned one too, with 60% of the working-age population in inner London having a degree 5 and a 400,000-strong student population that is spread across 40 UK-based higher education institutions.
London’s employment rate in 2014 stood at 72.4%, barely below the national average of 73.0%. Average weekly earnings in the capital topped the national charts at £675.92 6.
All of these factors place pressure on London’s existing private rental housing stock of 862,000 households, which equates to 26% of all homes 7.
People aged 25 – 44: 4,214,000
Current Student Population: 400,000
% Housing Stock Let: 26%
Average Monthly Rent: £2,045
Average House Price: £531,800
Average Rental Yield:4.5%
As a vibrant, cosmopolitan city, London has a thriving cultural scene with countless theatres, galleries and music venues. One of the oldest theatres in London is the Globe, built in 1599 and still one of the world’s most popular stages to showcase the works of William Shakespeare.
More recent additions to London’s cultural scene include the National Gallery in Trafalgar Square, opened in 1838 and the The O2 Dome in Greenwich, built to commemorate the 2000 millennium and today used for various gigs, exhibitions and shows.
The bottom line
Whilst house prices in the capital are above the national average, the rental yields of London are still attractive for a long term investment. The swelling population of young professionals, migrating to the city for employment, and rising rental prices highlight the city’s appeal to the investor.
2 Landbay Rental Index, September 2015
5 Office for National Statistics.
6 Cities Outlook Report, 2014