Is the London Property Market Ripe for Foreign Investors?

1. Is the London Property Market Ripe for Foreign Investors? After Britain's vote to leave the European Union, the value of the pound took a plunge, property sales volumes tumbled, and real estate prices took a nosedive. It’s easy to blame the poor performance of real estate on Brexit, but is this truly the case? In April 2016, a stamp duty of 3% was imposed on houses and flats that do not serve as the property owner's primary residence. The London Economic cites data issued by the Bank of England Prudential Regulation Authority and the Financial Conduct Authority - less investor were heading to banks for mortgage lending even before the referendum. Between the first and second quarters of 2016, gross advances had reduced by 9.3%. Could the 3% stamp tax increase be responsible for this decline?

2. It gets darker The London real estate market has been badly hit because of the struggling economy,a weakened currency, plummeting real estate prices, hikes in taxes, and a fall in demand.Property investors are continually burdened with the taxes they have to deal with. In 2014, the maximum stamp duty connected with property transactions was increased from 7% to 12%. The uncertainty of Brexit caused economists to slash their growth forecasts for 2017 and made investors postpone pending deals, making the already lowered property prices decline faster. Take a minute to recall Economics class. Remember the laws of demand and supply? When demand falls, suppliers are forced to reduce prices with the hope of luring buyers. George Kachmazov thinks that’s exactly what has happened to the London property market. With investors putting off pending deals and demand and supply having levelled out, developers are forced to lower their prices. The silver lining While the majority of investors held off on pending deals and others took a step back from putting their money in London real estate, foreign investors swooped in to have a piece of the property pie. Despite the seemingly dark forecast, there's a silver lining for foreigners who are keen on putting their money in London property investments. Foreign investors outside the EU are not as concerned about Brexit as EU residents and the weakened pound encourages them to invest in London property. Ollie McAninch of The London Economic suggests that since Brexit, London property investments from East Asia have risen considerably. With an immigrant population of about 40% in 2016, in areas such as the West End and Mayfair, we find that 55% of property investments were made by national’s of Russia, India, a number of African countries and the Middle East. For foreign investors that have been eying the London property market now is the time to dive in. Investment in property comes with risks as well as the possibility of rewards. For more information visit here https://www.crowdlords.com/full-risk-disclosure

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