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Foreign investors look beyond London

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The number of foreign investors looking to buy in London has started to slow, according to property firms in the capital.

Foreign investors using London properties as a place to store wealth were said to have caused rapidly rising house prices in recent years.

However, prices increased have slowed in recent months with properties now reaching an affordability ceiling for many ordinary Londoners.

This, and the strength of the pound, has seen the interest from foreign buyers wane in recent months. These buyers are now looking elsewhere to make investments.

However, there are reports than interest in major property developments is down and prices in prime areas are falling.

Russell Quirk, founder of online estate agent eMoov, told the Independent that it had seen a sharp drop in demand this year. He said demand was down as much as 60% in areas including Westminster and Kensington and Chelsea.

“I don’t think that there are many who will shed a tear for the well-heeled, sharp suited Mayfair type property predators. They have long crawled along the golden streets of prime central London, yet it seems that the tide has turned,” he told the newspaper.

“London has been a Monaco in the middle of Britain. But what comes up must come down and we are now starting to see a rebalancing with other parts of the country.”

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  • Julian

    Prime London prices have been falling since last year. Stamp duty at 12% on property over £1.5M has killed the market dead. There are thousands of unsold fiats in blocks, high rise blocks, countless riverside developments, the illusion sold to unsophisticated foreigner buyers by developers with glossy brochures leaving out railway lines, noisy main roads, adjoining council estates etc is also over. The energy & commodity slump globally has killed off the Russian & Nigerian buyers the Chinese are set for a hard landing and anti corruption clean ups by their government has reduced lots of funny money entering the market.

    Prime London is probably due for at least a 30-50% correction, not every foreign buyer wants to buy in London, there are other global Cities showing more attractive valuations. The interest rate cycle will start later this year or early next year, so the era of cheap money is ending but the supply of central London apartments coming to market is rapidly increasing which will further depress prices, creating substantive over supply and large price corrections.

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