Foreign Investors Snapping Up London Homes Suitable For First-Time Buyers

Foreign investors are buying up thousands of homes suitable for first-time buyers in London, using them as buy-to-let investments and often holding them in offshore tax havens, research for the London mayor, Sadiq Khan, has revealed. Led by investors from Hong Kong and Singapore, foreign buyers snapped up 3,600 of London’s 28,000 newly built homes between 2014 and 2016, according to the most comprehensive survey yet of international investment in London housing. About half of those were priced for first-time buyers between £200,000 and £500,000. The average cost of a home in the capital bought by a first-time buyer is now £405,000, almost double the national average. Read more on the Guardian website.

Foreign Investors Buying Up Flats In Suburbs

Wealthy foreign property investors are turning their attention from central London to cheaper suburban locations to avoid paying heavy stamp duty bills, an investigation has found. The trend, which follows a series of swingeing stamp duty hikes on expensive properties since 2012, means cash-rich investors are increasingly in competition with first-time buyers in new developments in outer London. It has been accelerated by the slump in the value of the pound that followed the Brexit vote in June, which has made London property around 15 per cent cheaper in dollar terms compared with a year ago. Read more on the Evening Standard website.

German PRS Giant Plans First 500-Home UK Project

German property firm Patrizia has revealed plans to build its first private rental scheme in Manchester in the First Street regeneration area. The 500-home development will form the foundation of Patrizia’s plans for a dedicated PRS fund, building on its significant European track record in the sector, which already includes the management of 80,000 apartments worth €7bn. The firm announced it had bought the 20-acre First Street site, which includes a half-built 180,000 building, to further develop offices and residential on the remainder of the site over the next 5-7 years. Read more on the Construction Enquirer website.

Foreign Investors Buying New Houses and "Leaving Them Empty"

An average home in Cambridge is now £419K. Yet despite the prices, houses continue to sell. In fact, Cambridge is now the fastest selling city in Britain, according to the property website 'Rightmove.' New housing, such as developments by the train station, is meant to ease the pressure. But not everyone buying a house wants a home. With prices continuing to rocket, estate agents say Cambridge is now seen as an excellent financial investment - and with the city's international reputation, buyers are flocking from all over the world. Estate agents have, on average, reported around 30 percent of residential sales were to overseas buyers. The head of housing at the City Council told ITV News it's time the government took action to deter buyers from leaving houses empty. Read more on the ITV website.

'Tax to Tackle London Bubble'

George Osborne is considering slapping new taxes on foreign property investors in an effort to tackle what many see as a house price bubble in London and the South East. The Chancellor is actively investigating imposing capital gains tax on foreign owners of British property at the Autumn Statement in December. The Treasury has already provisionally costed the measures and is awaiting a final decision from Mr Osborne in the coming weeks. While those living in Britain have to pay capital gains tax (CGT) of 18% or, more commonly, 28%, if they make a profit when reselling all but their main home, non-resident property owners are currently exempt for all their properties. Read more on Sky News.