4495e1322f9e4c2ea4c3901c8d5af5ad

Tuesday, 20 September 2011

London Property ‘in crisis’ as Foreigners buy Property

Britain will soon become a nation of tenants as huge deposits, high house prices and strict lending criteria combine to leave millions unable to climb onto the property ladder. Meanwhile foreign investors are buying up large chucks of London real estate as they seek a haven for their wealth amid the increasing risk of a global recession.

Britain’s housing market is “in crisis” as millions are forced to rent and the government must urgently act to increase the supply of homes, an alarming new report by Oxford Economics warned last month.

The housing study, commissioned by the National Housing Federation (NHF) warned that home ownership in England will fall over the next decade to the lowest since the mid-1980s as property ownership remains out of reach for many. It predicts that the proportion of people living in owner-occupied homes will decline from its 73 percent peak in 2001 to just 64 percent in 2021.

In London, it predicts that the majority of people will rent property, with home ownership in the capital falling to just 44 percent by 2021. That means around six out of every 10 Londoners will live in rented accommodation.

Meanwhile, the average house price looks set to rise by 21.3 percent over the next five years. The group, which represents housing associations in England, says a chronic shortage of housing is to blame. Only 105 000 homes were built in England in 2010/11, the lowest level since the 1920s.

“Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy,” says NHF chief executive David Orr.

Adding even more upward price pressure is the fact that wealthy foreign buyers have flocked to London in record numbers, buying up large chunks of property in the city’s most desirable neighbourhoods. The number of international buyers viewing prime central London properties increased by 23 percent in the three months through July, as the increasing risk of a global recession prompted investors to seek a haven for their wealth.

“We’ve had the US debt crisis, the eurozone debt crisis and financial market turmoil but none of these issues have touched London’s property market,” says Mike Smuts, managing director of Smuts & Taylor, a South African investment firm that specialises in helping rich South Africans buy property in London.

Smuts, who first predicted in February 2010 that Britain was fast becoming a nation of tenants, says that although Russian, Chinese, Indian and buyers from the Middle East account for most of the foreign purchases of London properties, wealthy South Africans have also been very active.

“Since the Reserve Bank relaxed exchange controls last October we have seen a large influx of clients who are looking for safe-haven investments amid the financial market turmoil and the alarming calls locally for nationalisation and the redistribution of land without compensation,” he says. “London property is fast becoming the ‘Swiss bank account’ of the 21st century.”

13 comments:

serviced apartments city of London said...

With no offense to you, the title doesn't make sense. I don't know if you pinpoint any particular country by 'foreigner', but people nowadays are clever. They invest wisely. Myself for example, whenever I visit London, I stay in serviced apartments city of London, because they offer value-for-money service. But I get rich someday and want to show it off, I'll definitely purchase a palace in London. I guess everyone is having the same thought.

Property Buying Agents London said...

London Properties are an investment for future and hence foreigners buy these properties as an asset..But the people in London also wish in buying a property in London and I guess, the buying agents comes in role here. The Property Buying Agents London help them access their desired property by saving the traditional property purchase fees.

And I've heard from many of my friends that they are happy with these buying agents as they helped the people own the property they have longed for in affordable price.

Anonymous said...

Hi my friend! I want to say that this post is amazing, nice written and include

almost all important infos. I would like to see more
posts like this.

Look into my weblog :: slc classifieds jobs

Anonymous said...

I cling on to listening to the news update

talk about receiving free online grant applications so I have been looking around for

the most excellent site to get one. Could you
advise me please, where could i get

some?

Review my webpage - http://fishingspain.net

Anonymous said...

What’s Happening i'm new to this, I stumbled upon this I've found It positively

useful and it has aided me out loads. I hope to contribute & help other users like its

aided me. Good job.

Stop by my web site - www.costablancaspain.us

Anonymous said...

What’s Happening i'm new to this, I stumbled upon this I've found It positively

useful and it has aided me out loads. I hope to contribute &
help other users like its

aided me. Good job.

My webpage; www.costablancaspain.us

Anonymous said...

I’m not certain the place you're getting your info, but good topic. I must spend a while finding out

much more or understanding more. Thank you for fantastic info I was searching for

this information for my mission.

Also visit my homepage catralproperty.net

Anonymous said...

Hi my friend! I want to say that this article is amazing, nice written
and include

approximately all vital infos. I would like to see more posts like this.


My webpage; Mar Menor Property

Anonymous said...

You can certainly see your expertise in the work you

write. The world hopes for even more passionate writers such
as you who aren't afraid to say how they believe. Always follow your heart.

my homepage :: Sanlucar de Barrameda Property

Prepay Penalty said...

Thanks for sharing this important peace of information for us.

Jesica m said...

Nice topics & article posted on blog. I like these tips. This is great and important elements in the modern world that mean London Property Investing. I have always wanted to know where all the yummy Vegan places were and now i can easily eat out at these place or order in! thanks so much!

jafor sheikh said...


The very heart of your writing shilst sounding agreeable at first, did not settle very well with me personally after some time. Someplace within the paragraphs you were able to make me a believer but just for a while. I nevertheless have a problem with your leaps in assumptions and one would do well to fill in those breaks. In the event you actually can accomplish that, I will definitely end up being fascinated.
Its such as you learn my thoughts! You seem to grasp so much approximately this, such as you wrote the ebook in it or something. I think that you simply can do with some% to force the massage house a bit, however other than that this is magnificent blog. An excellent read. I will certainly be back.
London Property Investing

Taira Claro said...

We have to teach our agents well on how things go for our Property Investment Portfolio. Think better on how we can help our business by learning things first everytime we do something. We have to be competitive in everything that we do for our business to ensure that we can learn more for our future.

http://investments-in-real-estate-australia.blogspot.com/2013/08/property-invesments.html