London still on top of the property world
Graham Norwood says London is a hotbed of innovation, global respect and widespread appeal
London is a hotbed of innovation, global respect and widespread appeal across a host of disciplines – and that goes for property as much as anything else, writes Graham Norwood.
In a year so far riven with Brexit uncertainty, General Election jitters and economic volatility, it’s easy to forget that the UK’s capital remains at the forefront of international interest and technical advancement. These six developments, all announced this year, demonstrate just how vital London remains to the world of property.
One major landlord, Moda Living, has linked up with Uber and gives London tenants £100 in Uber credits if they rent without a parking space – this is a global first. Moda also offers tenants a bespoke app to connect with each other and to control their heating and entertainment, as well as order food and other services, such as booking a cab ride.
One London estate agency, Statons, has signed up to a global property website – a sort of worldwide version of Rightmove – called The World Property Network. It advertises homes for sale on Sky Property TV, too. Statons says that since the start of 2017 it’s seen a 25 percent increase in business as a result of the new marketing.
High Net Worths’ favourite city
“More HNWIs choose to have a second home in London than in any other city,” according to Knight Frank’s Wealth Report. It says some 22.300 HNWIs have a home in the UK capital, ahead of second-place New York on 17,400 and Hong Kong on 14,800. Singapore is fourth with 11,200, followed by Dubai’s 8,200.
Fears that Brexit may dampen this emerging property investment have been proven wrong. Despite a fall in student numbers (from within the UK as well as the EU) global investment in UK student accommodation is increasing 17 percent this year according to Savills. And the city seeing the biggest investment? Well, London of course.
Barclays says UK average prices will rise by an average 6.1 percent by the end of 2021. Some areas will rise by less, but some by more – and the capital will see the single largest increase, up 2.27 percent annually over each of the next four years meaning that the typical home will have risen by no less than 11.88 percent by late 2021.
China’s largest investment in UK property is happening now in London. Shanghai-based CC Land Holdings has bought the ‘Cheesegrater’, the tallest building in the City of London, for a cool £1.135 billion. The deal is the second biggest ever for a UK property, after Middle East investors bought the HSBC tower for £1.18 billion.
“More HNWIs choose to have a second home in London than in any other city”