When it comes to property, UK house prices are starting to slow down and some experts are saying they have reached their peak. However for investors who still want to buy property London has always had the highest growth rates and best returns, so how has the slow down affected the capital? Surprising as it may seem for speculators who still want to purchase property London still has many excellent opportunities.

This article will seek to show that in spite of a slowdown in property prices in the UK, the London flat and housing market still represents a solid investment and should continue to do so for many years.

An important consideration is the large discrepancies between different London borough’s when it comes to prices and growth potential. While the growth in some areas are considered to be flattening out, many others have still a long way to go before reaching their full potential. In fact on the contrary, due to regeneration, many areas of London are going to see a lot of growth over the next decade. Therefore if you are seeking to purchase property, London presents a huge opportunity.

Take Notting Hill as an example. This represents one of best investment opportunities due to it’s high growth rate. Prices recently dropped in this area even though it is a very trendy place to live. This has created an opportunity to buy property to let in a very trendy area as prices are now starting to rise again.

The enormous regeneration scheme in London’s East end due to the 2012 Olympics has created a superb opportunity in Stratford. Over the next five years this part of London is going to undergo rapid transformation. Buying property for sale in this area could prove to be a very lucrative investment. Peckham is another area to consider. In the past this was considered one of the most run down areas in England. However it recently became the recipient of a £300 million investment and regeneration package and has now even won a tourism award! So London still has many superb investment opportunities, even if you are seeking to buy cheap property.

What you may find surprising is that the price of property has been and continues to be affected by investors from overseas. To put this into perspective more than sixty per cent of all houses, apartments and flats and other property for sale costing more than four million pounds were bought by overseas investors. Usually these are high paid executives and brokers working in the city

In the past they would purchase a property on moving to London then sell it when they left their job. This has now changed because of the increasing value of London property, which has changed the perception of these properties from a simple abode to a capital investment. This has resulted in these properties being retained while income is earned from property rental. This has resulted in property values further increasing because there are less houses, apartment and flats on the market.

This is a contributing factor which makes London such an amazing opportunity for property investment. There is already a lack of housing and the population of the capital is set to increase by over 800,000 in the next decade. At this projected growth, even with the high rate of new properties being built there will be insufficient properties available to meet the demand. As a result there will be a shortage of London properties for the foreseeable future.

New properties are being built at an astounding rate but won't be able to keep up with the demand … finding people looking for rental accommodation will always be easy as long as housing demand exceeds the supply of available property to rent.

So there are still very lucrative investment opportunities in London for buying property to let.

The huge variation in house prices in different boroughs, combined with regeneration investment, overseas buying, the demand for new housing and property for rent, will ensure that for those who want to buy property London will remain a sound investment for many years to come.