Savills, the estate agent, says £3.7bn of foreign money is pouring into the prime London housing market every year and especially into areas such as Mayfair, Kensington, Notting Hill and Chelsea.
The demand is leading to UK owners selling their homes and moving to outer London, creating a "champagne tower effect" with the distribution of wealth in the capital.
Savills' report, called World in London and published on Friday, says British sellers of homes in central London have outnumbered British buyers by 30pc this year, compared with 5pc in 2008. Meanwhile, foreign buyers have outnumbered foreign sellers by 58pc in 2011, up from 23pc in 2008.
The market is being boosted by the weakness of sterling and the perception of London as a safe haven amid political and economic uncertainty.
Yolande Barnes, head of residential research at Savills, said: "We anticipate that London will continue to attract overseas buyers in the foreseeable future, especially with the eyes of the world on the London Olympics next year. "The diversity of economies from which these buyers originate and of their motivations for purchase, mean that there will nearly always be an overseas market for London property for as long as London remains a major global city." » | Graham Ruddick | Saturday, June 11, 2011
My comment;
Successive British governments have been absolutely stupid to allow this to happen. This is the United Kingdom; London is our capital. Therefore, the indigenous population should be able to buy a home in these prime locations if they have the means. But by allowing all these super-rich oligarchs—many of whom are rich through ill-gotten gains—to come to London to buy upscale properties means that British people cannot compete. And this in our capital where so many British people need to live to conduct their affairs.
Why are our politicians so stupid? Why are they so craven? Why do they go weak at the knees as soon as billions are mentioned, losing all rational thought?
I have lived in Switzerland, and I know how that superior political system works. I can tell you this: The Swiss look after their own, first and foremost. Rich foreigners are welcome to buy property in Switzerland, but only in certain designated areas. All properties are not open to foreign ownership. In particular, in cities such as Zürich, where commerce is of great importance, and Swiss people have to be able to afford to live within commutable distance of their places of work, foreigners are generally disallowed from purchasing homes at all.
Why are the Swiss so sensible and considerate of their people's needs, whereas our politicians, regardless of the hue of the party, are so greedy, inconsiderate, and idiotic? – © Mark
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