CONFIDENCE IN LONDON REMAINS HIGH – ECONOMICALLY AND POLITICALLY
London is at the heart of the strongest G7 economy and confidence remains high. London will always be a politically and economically safe place to invest. London is one of the leading global financial centres with strong economic fundamentals. It has proved time and again that it can withstand economic shocks and perform as an economy in its own right, even when the UK economy is frail. The lower yields in London reflect the lower risks attached to investing in this strong economy

LONDON CONTINUES TO BE POPULAR WITH OVERSEAS INVESTORS
Overseas investment continues to rise, and as per published reports, 64% of London investment was from overseas; in 2014 this has risen to 73% and continues to rise. The liquidity of the London market ensures there are always investment opportunities and always deals.
Similarly, London’s residential market is outperforming the rest of the UK and not just in the £1m+ category. In fact we see large growth prospects in the sub £1m category as well. In particular, London residential values are forecast to grow by 46.4% over the next 5 years, which is the highest predicted growth, in the £1m-£3m value range.

U.K OFFERS OVERSEAS INVESTORS AN ATTRACTIVE TAX REGIME
There is generally no UK tax on capital gains for non-UK resident investors buying property in London, even on deals negotiated or signed in the UK. When calculating taxable rental income, interest on a loan to a non-resident landlord secured against the property is generally deductible.

TRANSPARENCY AND LIQUIDITY
The simplicity and efficiency of the UK legal system and market practices means investors are able to access accurate market information about particular assets, as well as about the market in general. The liquidity of the London market means that entry and exit are always possible.

BOOMING REAL ESTATE
London has been branded the world’s most expensive city for five star hotel suites and luxury serviced apartments, according a new accommodation survey.

An under supply of top end hotels in the capital, due to land prices, and the strength of the pound have pushed prices up to new heights – with the most lavish rooms in Mayfair costing £11,700 a night.
At £2,050 per night, the cost of renting a five star London hotel suite is now eight times more expensive than renting a furnished apartment (£248 per night), a new study has revealed.
For example, at £746,044 – the cost of renting a hotel suite for a year in London is the price equivalent of buying a flat in London or a country house in the home counties.
Budget hoteliers cannot cover their costs and are being forced out of the West End market due to rising property values in prime central London – up 77.9pc since 2009.

“The report shows the astonishing strength of the recovery in values in the luxury hotel, serviced apartment and private rented markets in prime central London since the global recession of 2007 to 2009.”

“Since 2009 hotel and rented apartment rates have risen by over 25pc and the cost of renting a room and sleeping in London is now at a record high. In the hospitality sector, West End takes the crown as the most expensive place to sleep in London, and one of the most expensive in the world alongside New York and Monaco.”

The detailed report which analyses cost per square foot, suggests the city is on the cusp of a surge of investment into the London hospitality market.

In Mayfair and Central London, the average occupancy rates in the luxury sector are at 78pc to 80pc, indicating a demand across the market. In addition, on an international comparison, London’s occupancy rates are now amongst the highest in the world, outstripping Dubai (79pc), Paris (78pc), Munich (77pc), Moscow (70pc), Barcelona (69pc) and Rome (69pc).

Thus, branded residences that provide hotel suites, serviced apartments and private sale flats are set to grow and become a major niche sector of the London hospitality market. Needless to say that the ‘Buy to Let’ properties are seeing an upsurge and this will continue in the years to come.