Welcome back to the Experience Invest blog, where we discuss the latest trends in residential property, student accommodation and care home investments. Today we’re focusing on the growing international demand for property in London.
A new report by E J Harris Limited, a Mayfair-based lettings and management agency, shows international tenants are a dominant feature of the prime central London rental market.
According to E J Harris, rental properties in the £4,000 per week plus price band are being snapped up by wealthy overseas visitors to the UK, including high-net-worth individuals from Russia, Africa, the Middle East and Asia.
In comparison, residential lets in the £1,000 to £4,000 a week bracket are more likely to attract bankers and corporate tenants, while rental properties fetching £300 to £1,000 a week appeal to domestic tenants, including students.
The research also finds that rental values in central London have increased by 1% over the last few months. Investors can expect to achieve an average gross yield of 2.92%, and an average rent of £54 per square foot.
Commenting on the report, Elizabeth Harris, owner of E J Harris said: “London is the premier world city to live in, shop, do business and visit for leisure. London attracts both UK and international tenants looking to enjoy the vibrancy and exclusivity that the city’s best postcodes have to offer.
“It is perfectly positioned midway between New York, Moscow and the Middle East and is in a time zone which allows someone residing in London to trade on the world’s key stock markets throughout the day.”
According to Property Wire, the analysis is based on data from E J Harris’s own client database, along with local market intelligence. It is being used to identify the most sought after properties in central London, and provides an overview of the type of tenants such properties are attracting.
Although someone looking to pay between £4,000 and £6,000 a week could expect to secure a luxury three or four bedroom apartment in a sought-after location such as Knightbridge, Mayfair or Belgravia, they may struggle to do so.
This type of property typically attracts CEOs and other professionals working in the banking or finance sector, and is in high demand. Low stock levels mean the properties are not always readily available.
Failing this, would-be renters could seek something with a rental value of over £6,000 per week. This market is dominated by ‘ultra’ high-net-worth individuals from countries such as Africa and the Middle East. While properties in the £8,000 plus per week price band are being let by individuals from Russia, Asia and Africa who, according to the report, have made their money in commodities, energy or finance.
If you are considering investing in residential property why not contact Experience Invest. We have a wide selection of residential investment opportunities available across the UK.
About Experience Invest
Experience Invest is a London-based independent property specialist. We focus on sourcing real estate opportunities across the UK. Our specialisms include residential investments, student property and care home investments. We work with clients in the UK and internationally. The company is regularly featured in the press, including in The Telegraph newspaper, on Yahoo Finance, and by the global news organisations Reuters.
Experience Invest recently announced the launch of One Wolstenholme Square, a brand new residential development in the heart of Liverpool. If you are interested in finding out more about this exciting residential investment opportunity please visit the website for full details.