Regarded internationally as a “world city,” London attracts countless overseas investors to its property market every year. This provides a valuable injection of cash into Britain’s capital, funding new developments and, in turn, boosting the housing supply.
A safe investment
“It’s easy to see why so many investors choose the London property market,” says Director Kelly Gallagher. “With the soaring demand in both the commercial and residential markets and a consistent lack of supply in the housing market, the UK capital will always be one of the safest places to invest.”
Exchange rates
Investors can currently benefit from the exchange rate since sterling has declined in value since the EU referendum. For the USA or those with currencies pegged to the USD such as Hong Kong, investors can benefit from a worthwhile 10%+ additional value on currency. This can easily translate into millions of GBP’s saved on a larger deal, more than covering the taxes imposed on both local and international investors by the British government.
Lenders favour overseas investors
Borrowers can also look forward to very low interest rates and low bank margins, while lenders have shown themselves very keen to lend to overseas investors. Kelly explains, “Overseas investment has made a phenomenal contribution to London’s developments. We anticipate that lenders will continue to encourage foreign investment because of the important role it plays. In addition, because the London property market is considered quite stable and risk free, we have seen more overseas banks offering debt to their local investors for property in the Greater London area.”
Choosing an advisor
While it may be tempting to work with someone you already know, there’s no substitute for a property investment advisor based in the city where you’re planning to invest, especially in a market as fast-paced as London. Choose an advisor with access to all the available options so you can select the best one for your needs. It’s also worth looking for one with close links to tax and legal advisors, as well as local and international lenders, so you can benefit from expert knowledge and a range of products.
“Confidence is remains high in London and the economy is still strong,” says Kelly. “Investors should take advantage of today’s market, plan to hold their prize asset for the long term and expect healthy capital appreciation and a steady demand and income.”
To find out more about how our investment team can help you realise your goals, read our capital markets information here.
