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London

London’s economy continues to outperform the rest of the UK, making it an ideal location for buy-to-let investors seeking strong, long-term returns. The capital’s Gross Value Added (GVA) is set to grow by 1.9% in 2025 and 2.2% in 2026, reinforcing its position as the UK’s economic powerhouse.

This economic resilience has fuelled a surge in demand for rental properties, driven by high job creation, strong rental yields, and population growth. London remains the top destination for US and global firms expanding into Europe, attracting skilled professionals who need quality rental accommodation. Rental prices continue to rise due to increasing demand and a shortage of available properties. At the same time, London’s population is projected to exceed 9.5 million by 2030, further strengthening demand for rental homes.

With an undersupply of housing and an influx of tenants seeking high-quality accommodation, investing in London’s buy-to-let market offers both capital appreciation and consistent rental income. Now is the time to capitalise on its booming rental sector—a prime property investment opportunity in London, a city that continues to lead the UK’s economic recovery.

Between the 2011 and 2021 censuses, London’s population grew by 626,000, or 8%.

Today, more than 8 million people live in the capital, representing around 15% of the entire UK population. Tower Hamlets and Barking and Dagenham demonstrated the highest growth rates, increasing their populations by 22% and 18% respectively. This makes the city a lucrative, stable, and attractive destination for buy-to-let property investors.

One of the reasons why London’s population is growing so rapidly is the rapid rise in job opportunities across the city. It’s predicted that employment will rise from 6 million in 2021 to almost 7 million by 2051. The primary driver of these opportunities is expected to be the professional services sector, which is showing strong signs of recovery and significant growth. This is good news for property investors as more jobs means more people are needed in the city, creating a new pool of arriving tenants all in need of rental accommodation.

London’s population is also growing thanks to a burgeoning student population. It was named the QS Best Student City for 2023, and is home to 18 universities, as well as nearly 50 additional higher education institutions.

Four of the top 50 universities in the world are located here, attracting students from the UK, and across the globe.

For property investors, it’s important to note that as many as 370,000 people living in the city are enrolled at a London university. However, there are just 97,000 purpose-built student accommodation beds available. The growing and urgent demand for affordable student accommodation is one of the main forces behind the projected 17.1% 5 year property rental growth.

London consistently ranks among the most searched and visited international destinations for American travellers, and the city welcomes more than 20 million visitors each year. Approximately 1.3 million of those visitors stay overnight, or longer – so short term stays are another potential source of revenue for buy-to-let investors.

80% of visitors say that they come to London for the culture, and that’s reflected in the list of most visited attractions. The Bank of England Museum, Museum of London, St Paul’s Cathedral, Tower of London, City of London Police Museum, and the Guildhall Art Gallery all top the list of London’s most in-demand attractions. And that’s not including the West End theatres, royal residences, and more.

Fortunately, London is excellently connected, making getting into the city simple. There are six major airports, including Heathrow, Gatwick, and City. London is also well connected to other major UK hubs, with direct trains to Liverpool, Manchester, Sheffield and Birmingham. The launch of the superfast HS2 line is expected to make London even easier to access from these regional cities, bringing new opportunities, visitors and residents.