Bill Hunter, chairman of Hunter Finance, spent the past week meeting with potential clients throughout the South East of England. He stated that a “very clear picture had been painted of the London housing market”.
On speaking to experienced developers, looking to start developments within the commuter zones outside of the city, Hunter found that they were wary of new larger developments that were set to rock the capital over the coming years.
“Battersea looked set to paint a picture of the future for investment within London property. While prices have been rising rapidly over the last few years, the gap between supply and demand is set to close drastically. This could see property prices in London begin to flat-line before dipping down.”
His words were simply echoing those of developers across the South East. Their fear is that profit margins in London will be hard to come by for future developments. And, that’s without considering the effects a potential Brexit could have on property prices.
It is still possible to successfully complete a profitable development in London as shown by one of our clients.
They built a row of terraced properties in Dulwich with a substantial return of 33%.
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Developers are looking to start developments within the commuter zones outside of the city with great transport links to London and other major cities in the South East.