Foreign investors look beyond London
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.”