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Why Invest in London

For many international investors three major factors have underpinned the appetite for London property investment: first, capital growth in a tangible asset coupled with investment diversification; secondly, the advantageous currency values for many nationalities; and thirdly, London’s continuing leadership to offer world-leading education. The UK has an excellent education system, four of the world’s top ten universities are in the UK.

One group of investors is proving noticeably less pessimistic: buyers from China, Hong Kong and Singapore, have continued to snap up thousands of property in London and remain largely undeterred by Brexit.

Record property prices in the Far East, along with regional political concerns are pushing investors to turn to other overseas markets where rental yields are higher like the UK and namely London being top of the list. Already acclaimed as a well-known safe haven, UK’s popularity with Chinese buyers saw a huge spike on the back of the post-Brexit depreciation of the British pound where the sterling dropped 12% since the referendum against the U.S. dollar - which the Hong Kong dollar is pegged to. Leading China based property website Juwai.com, reported buyer enquiries surged 40% in the month following the Brexit referendum. There’s no catch, the British pound has hit a 31 year low whilst Chinese property prices have soared to a 25 year high leading to a surge of Chinese money into UK property.

This fall in sterling's value after the EU referendum means buyers can purchase UK property with an approximate 20% discount compared to pre-vote prices, this made UK property a bargain buy in the eyes of Chinese investors. International investment in London property accounted for 12.8% of newly built homes between 2014 and 2016 led by investors coming from Hong Kong and Singapore for almost half of all transaction followed by Malaysia and China.

Given the severe housing shortage in the UK, Parliament estimates the need for an additional 300,000 homes per year. London has been assessed to peak at 46,500 new homes to be built in 2017, but demand vastly outstrips supply. China has a population of just under 1.4 billion, even if only 1% of China’s population were to target London property that’s 14 million people. This is almost twice the population of London and equivalent to over 300 Chinese buyers alone per new home built in London. Furthermore, it is widely reported only a very small percentage of mainland Chinese investors are currently active in purchasing investment property – thus a virtually untapped goldmine lies over the border in mainland China with London being a top target.

However, whilst local governments try to control both inbound and outbound investments respectively, International investment plays a vital role in providing developers with the certainty and finance they need to increase the supply of homes and infrastructure for Londoners and other major UK metropolitan cities like Birmingham and Manchester. A study based on an analysis of 8,000 Land Registry records found that almost all of London’s largest residential development required overseas investment to get under way, either through purchasers buying off-plan, equity finance or investment in UK developers.

Demand and transaction volumes in Prime Central London have continued to improve steadily in 2017 as asking prices came down, in addition the number of tenancies procured across in the first six months of 2017 was 7.2% higher than 2016 according to LonRes, a premier UK property data source. These two factors are undoubtedly the two most important factors to consider when investing in a buy-to-let property.


Services

New Homes
We are recognised by UKs market leading developers as a property investment powerhouse. This in turns has allowed us to receive appointment and continually bring you the very best of what the UK property market has to offer. Our range of New Homes speak for themselves and we are regularly at the forefront of new launches.
Legal
HT Heritage have teamed up with some of the market leading firms in New Home sales to deal with the practical difficulties of conveyancing thoroughly and efficiently and with a view to protecting our clients commercial and personal interests.
Mortgages
Connecting investors with the world’s leading lenders and finance providers is a key part of HTH 360. Through our strong and exclusive global network, our partners are able to source and secure access to the most competitive mortgages in key world markets.
Asset Management
As part of our HTH 360 service this is yet another key area we identified and focused closely on. HT Heritage have teamed up with leading London agent, Tafaders, to offer professional asset management services to ensure you are given all the guidance you require to reap the rewards of your investment as soon as possible.
Resale / Exit
Our preferred partner, Tafaders, can advise you on the best time to put your property onto the market and realise your investment potential, whichever market you’re in, we have a wide variety of sales channels to support you.
Furniture
HT Heritage offer a bespoke furnishing solution for investors, part of HTH 360. Furniture packs are comprehensive and thoughtfully designed to attract quality tenants. We have tailored and designed three furniture packs based on cost and suitability as each property and landlord is unique which we can offer you.