22% of prime London properties purchased sight unseen by overseas buyers
London Central Portfolio (LCP) is experiencing an influx of international buyers, willing to blind purchase properties in prime London to acquire at bottom of market pricing.
- LCP reports 22% of their acquisitions this year were bought sight unseen by overseas investors
Investors still recognise London as a global city and a ‘go-to’ destination, highlighted by the increase in young professionals moving to the capital.
- LCP reports 21% increase in under 30-year olds starting new tenancies in Q3 2020 compared with same period prior year
Source: LCP in-house analysis
Andrew Weir, CEO of LCP, comments “LCP is a respected and trusted set of eyes and ears on the ground for our overseas clients. They trust us to identify market segments with good investment opportunities and to negotiate the best deals. We have been able to advise based on our intimate knowledge of the prime London market and our unique provision of a detailed financial model enabling our established clients to invest sight unseen.”
“There are four significant calls to action which should not be overlooked” states Weir. Firstly, the stamp duty holiday ending in March 2021, the anticipated 2% additional surcharge for overseas buyers in April, the added appeal of an attractive sterling exchange rate, and most importantly the current discounted prices in the market compared to its peak in 2016.
This unique buying environment has also resulted in a strong demand from family offices and investors looking to invest at scale, some acquiring large blocks of flats preferably with the opportunity to add value to maximise their returns.
London continues to be viewed as a safe haven asset class benefitting from the rule of law, GMT time zone, prestigious educational establishments, a global business language and liberal culture. With the significant increase in purchases made via virtual viewings and evidence of pent up demand, 2021 may well see the beginnings of a rally in prime London similar to post Global Financial Crisis, where prices increased by 61% between March 2009 and September 2012.
Source: LCP Analysis of HM Land Registry UK House Price Index data