Most news stories concerning the property market these days talk about how house prices are at an all-time low, and that people that invested in properties years ago are now finding that their investment has not grown over time. However, there is one area in Britain where house prices seem to either be unaffected or actually improving, and that’s in London. This has led to a massive rich/poor divide across the UK, as the capital is seeing a boost in housing prices due to overseas investors buying million pound properties in well-known areas.
For example, it has been reported today that a property in Chelsea that was bought for just £17,000 in 1967 is expected to soon be sold for between three and four million pounds, which means a profit margin of a whopping eighteen thousand per cent. Back in 1967 seventeen thousand pounds was still considered a large amount of money to spend on a home, especially if you consider that the average wage was just twenty two pounds per week. However, over the years the property has gained more and more value mainly due to its prime location and the fact that the area has become popular with the rich and famous.
Mathew Kaye, from the estate agents Kaye & Carey is managing the sale of the property, and has said there has already been a huge amount of interest. He went on to say the owners, who wish to remain anonymous, are surprised about how much the area has changed, however Mr Kaye says that it is quite normal for foreign investors to buy property in the Chelsea areas. He went on to say: “I noticed a Porsche parked outside and the owner said “there weren’t any of those when we moved in.” That bit of Chelsea has always been very English but it’s changing and we have already had interest from other nationalities. At least ten viewings were arranged within 24 hours of the house going on the market. It is likely to go for more than the £2,950,000 asking price.”
Landlords who have properties in the Chelsea and Kensington areas will be pleased to hear that their properties are increasing in value, as it means that their investments are safe and that they can make a good income from rent payments. However, due to the fact that these houses are so valuable it also means that landlord insurance could be more expensive, and that maintenance and repairs will be expected on a more regular basis.