The number of people renting apartments in the UK has increased from 2.15 million in 2004 to 3.35 million in 2010, which accounted for a 55% increase over the 6 years. This is primarily due to the high prices of housing and the reluctance of banks to lend money for acquiring housing. This situation leads to the fact that there is a significant increase in rents, which in turn increases the return on investment in the purchase of further property rental trend. According to a recent survey conducted by a number of the UK’s leading real estate agencies and solicitors.guru company, aggregating conveyancing solicitor and allowing you to find a solicitor effortlessly, every tenth rented house in Britain in 2012 generated at least 10% of income, and the average yield across the country amounted to 6.2%.
The amount of foreign buyers in the UK property market is dramatically increasing. And while a decade ago the presence of wealthy foreign buyers in central London was the norm, now greatly increased the number of foreigners acquiring more affordable business-class housing in all areas of London and beyond. Currently, the share of foreign buyers in new buildings varies between 40 and 60%. These are mainly buyers from Asia, namely, China, Singapore and Hong Kong, CIS and Arab countries residents. Also, because of the sovereign debt crisis increased the flow of buyers from Southern Europe. In 2011, the value of real estate purchased by foreigners in London was estimated at £5.2 billion, exceeding the analogous index of 2010 to £1.5 billion to put London in the first place in the world.
High return on invested capital, is only one reason that London is a world leader in foreign investments in real estate. Perhaps more important is the fact that, historically, London has always been a “safe haven” for foreign investment in real estate. Customers who invest in real estate in London, considering their investment not only in terms of the real estate, and much more broadly: the rule of law, stability of power, leading the educational system, the rich culture, tradition and heritage contribute to a reliable accumulation of wealth.
A recent study by the University of Oxford revealed the rise in prices in central London is directly related to the growth of instability around the world. Thus, London real estate has become a delicious piece of pie for many wealthy investors looking to protect themselves from inflation.
London is a global brand; and not many cities can compete with the city in terms of infrastructure, level of life and business development climate. Even if alternative real estate markets exist, comparable with London on the level of openness and transparency, they are very not numerous. Investments in real estate of England and London in particular are now fairly considered to be mid and long-term investments. The combination of qualitative characteristics of London as a financial center (the financial center at least in Europe, comparable to the largest regional centers – New York and Hong Kong), legal, political, cultural and social hub, standing out with dynamically developing, reliable infrastructure and a particular urban landscape, just instill confidence in the fact that the status of London as a safe haven doesn’t raise any questions.