Foreign investors 'dominate London prime property market'
Source: Property Envy, July 2011
Central London’s prime properties have increased in value by up to nine per cent during the first half of this year alone, a new report indicates.
Figures from W A Ellis show that 70 per cent of the agent’s buyers are from overseas – an increase of 15 per cent on last year.
Daniel Wiggin, a partner at W A Ellis, said that foreign investment has now outstripped domestic purchases.
He said: “Foreign investors do not need to sell and, in many cases, their investments here are seen as the equivalent of a high interest bank account.
“This means that domestic interest rates are now not as influential in the market as foreign exchange rates, and so we look closely at political posturing in other counties and international markets in order to predict what will happen in the market.”
Mr Wiggin added: “The dollar remains relatively weak against the pound which does not help us. However, sterling continues to be relatively weak against the euro, which is attracting European buyers.”