Forecast of the rental market in the UK for 2014

The attractiveness of real estate in Central London for wealthy foreign investors as a safe repository for their funds, may decline in 2014.

Luxury real estate Central London uses in 2013, an unprecedented demand from foreign investors, most of which represents the middle class from the Middle East and Southeast Asia.

But in 2014, according to forecasts of experts, in particular, analysis made by a major real estate company Winkworth, which operates in the UK, will take place a number of facts, which will be observed a slight relaxation of foreign investor interest in luxury housing in Central London.

First, the improvement of economic performance in the UK, began to strengthen the pound sterling.

Second, the global improvement of the situation in the Eurozone, will allow investors to seek other opportunities for investing their capital.

In addition, part of the real estate because of its increased cost would exceed the cost threshold of £2 million pounds, which is subject to Stamp duty at 7%, which will increase costs for investors and also maybe a few to cool their ardor.

In total, all of the above factors, however, still does not hurt of Prime London property to rise next year by about 5% per year. Higher profitability is projected in the suburbs of London – about 10%. Many people who are unable to buy a property in London in 2013, will seek to do so in 2014, but in the suburbs, taking advantage of the price difference, which was formed now between London and the suburbs.

About £130 billion of funds to implement the program “Help to buy”, will be focused on the real estate market. Together with low interest rates on mortgages, these funds will have a stimulating effect on the property market in the UK and for the first time since 2007, the good activity of the real estate market will receive the regions of the UK, which is in a state of stagnation.

® Maxim Savitsky. In 04.12.2013

Property investment London

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