Savills plc recently released its “World in London” report, which says that foreigners will spend $6 billion on luxury homes in the UK capital this year, partially due its reputation as a financial haven and the continuing weak value of the pound.
The pound has lost 18% against a number of currencies since the end of 2007, which has attracted wealthy foreign buyers to purchase London real estate costing $1.6 million or more. It’s especially attractive to investors whose home markets may be facing political and financial instability, and who perceive London property as being a secure asset.
Groups of foreign investors usually come from Western Europe, while the biggest individual purchases are being made by investors from Russia and Eastern European countries, with the average price being just under $10 million.
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Foreigners spending billions on luxury London homes
UK Rent Rates Increase in June 2011
The latest report published by LSL Property Services on Monday, July 18th suggests that rent rates in UK exceeded 700 pounds in June 2011.
Rent rates in England and Wales rose to 701 pounds, which is 0.7% and 4.1% more than in May 2011 and June 2010 respectively.
London rental property is available for even more: rates have reached 1006 pounds in June 2011, which is 6.9% up from the rates registered at the same time last year.
Landlords’ yield jumped to 5.2% last month as a result of declining house prices and growing rent rates.
According to LSL Property Services, there were only 3 UK regions that saw rent rates falls. Those were the East Midlands, the South East and Yorkshire.