London Property Was on the Rebound for Overseas Investors - Now It Could Be an Open Goal
London property is regaining its popularity with elite investors, says The Spectator. After a decrease in interest for Prime Central London (PCL) that started with fears of what Brexit would mean for the UK economy, the global elite are back and investing in Britain’s capital once more.
The primary reason for this shift, suggests The Spectator, is the Ukraine war. As no-one can now foresee what may happen to the global economy in the next 12 to 36 months, UK property is back on the market, so to speak. And PCL compares well against other investment options, with its security stemming from factors such as Britain’s scope for trade opportunities, both east and west, due to being on the Greenwich meridian. We also have political stability, and we are an island with a strong rule of law.
For property developers in the UK, it might seem like the best time to start investing in overseas marketing to attract foreign buyers. Utilising the newest technologies can be of much use in this venture. Virtual reality home tours, for instance, can be a great way to illicit interest from afar.
However, with the pound lowering in value by the day, the interest in PCL could go one of two ways. The Government’s Growth Plan might be accused of causing the further demise of the pound and putting cautious investors off, with the long-term stability of the UK economy in question. That being said, early signs show opportunistic buyers building their portfolio as their native currency goes further. US buyers in particular are taking advantage of the situation, with London houses now costing American investors 16.5% less.
Housebuilders may therefore be best off taking a backward step to analyse the situation, before deciding what market to prioritise in the coming months. Chancellor Kwasi Kwarteng’s recent announcement on the permanent reduction of stamp duty means developers might do well to consider focusing their attentions on buyers in the UK.
With access to up to £11,250 in relief, these changes to stamp duty may lead to an increase in house sales to domestic buyers looking to upsize. With the increased cost of upsizing, buyers expect a customer experience to match – Completion Manuals, Welcome Gifts and a 24/7 residential portal can all be ways of providing this.
So, whether developers want to make the most of the current momentum in PCL or look at the opportunity to ramp up sales to domestic buyers, now could prove a good time to be building and selling houses.