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Has London Property Lost Its Appeal To Foreign Investors ? Bbc News In A Mo

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Many buyers would welcome lower prices, 'but even the authors of the report say London prices unlikely to drop any time soon.'

Capital values have accelerated away from rents.

Population growth for Manchester and Birmingham = HPI+++.

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Out of top ten in Europe for investors....Birmingham, Manchester better for investors....Berlin and Hamburg at the top.....London only comes 15.....cooling in the market very welcome....no drops any time soon, but no drops is falling in real terms ....low yields because the prices so high.....other places to put your investments, certain shares pay 5%, guaranteed savings accounts pay almost 3%.....

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Reporter voiceover (EA is showing 2 ladies a plush apartment):...showing overseas clients the best London has to offer, a £1.9M flat overlooking Tower Bridge, but investors are unlikely to make the kind of profit the last American owners have. The value here has quadrupled here in less than 20 years. And that's one of the reasons why the authors of this report believe London has dropped out of the top ten cities in Europe for investing in property.

Gareth Lewis - Report author, PwC: It's clear that people are starting more easily to spot the relative opportunities in other cities; cities like Birmingham which came sixth in the rankings, reflecting a very positive story there around devolution, around a growing population, and a similar story in Manchester.

Reporter: First and second spots for investors in property now go to Berlin and Hamburg. ....(Back to London). Estate Agent John Byers says that London rents have not gone up to give buyers an attractive return on their money.

John Byers - (Anderson Rose Estate Agents): Tenants will look at it in a different way to a purchaser. For them it is a place to live and they will therefore evaluate that against their own affordability and earnings. From a purchaser's point of view they see it as an investment and therefore rents have gone up at a lower rate than capital values.

Reporter: In these rankings London's dropped to fifteenth place, but experts say it's still seen as a safe prospect when it comes to investing money in property. Any sign of a cooling in the market is welcomed by those people who are trying to get on the property ladder in the capital, but to make homes affordable for most people here there would have to be a drop in prices, and even the authors of this report say that is unlikely any time soon. Sarah Harris, BBC London News.

Edited by Venger
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Even when the yield was good people where drawn to this because of the rapid jump in house prices. Mostly investors are looking at the Asset price inflation and the party is over.

All this talk in the media of putting up rents / not enough rent to make a good return is BS. Greed for the HPI drives the prices higher.

If you were looking for yield you would have stopped buying years ago.

Once they see that they are sitting on a very expensive non performing asset, they are going to sell.

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