Investors acquire majority of new homes in London
Thu 27th February 2014, 12:12 pm
More than 60 per cent of new homes built in 2013 in the capital have been acquired by investors, according to new research.
The report, commissioned by the British Property Federation, found that 48 per cent of these were buy-to-let. 15 per cent of new homes were acquired by overseas buyers.
The report also says:
- Major schemes are rarely exclusively marketed overseas
- Overseas sales tend to occur in the earlier stages of delivery, helping to secure project finance
- The proportion of overseas buyers fluctuates heavily depending on location: from up to 80 per cent in certain central London areas, to less than 10 per cent in outer London
Liz Peace, chief executive of the British Property Federation, said: "We shouldn’t forget that we are just emerging from the worst recession since the Great Depression.
"The last few years have been difficult for housing providers, with housebuilding, lending to the sector and mortgage availability all dropping off a cliff.
"Accordingly the industry, like any manufacturing industry, has had to diversify into new markets.
"Investors looking to pre-fund new developments have helped get projects off the ground and kept people in jobs."