The 22-year-old 'Love Story' hitmaker is said to have fallen in love with the English capital while promoting her new album 'Red' and is eager to invest in a property there, reported Radar online.
"Taylor is looking into expanding her property portfolio in Europe and London is one of her preferred destinations. She loves being in London, just because it's such a vibrant city and if she had a base there, it would be easier for her to travel around Europe when she's touring," a source said.
"She's also a realist who knows a successful pop career can sometimes be short-lived. She wants to invest the money that's pouring in from the amazing success of 'Red' into real property," the source added.
Last year the singer bought a home in Nashville for USD 2.5 million. She also reportedly owns a huge penthouse apartment in the city, as well as a USD 3.3 million home in Beverly Hills.
Swift also bought a USD 4.9 million 13-room property in Hyannis Port, Massachusetts in August after spending time in the area with her now ex-boyfriend house Conor Kennedy, 18, and the property is said to be across the street from his grandmother's home.