In a speech at the MIPIM Property Conference in Cannes, France. Mayor of London, Boris Johnson, made it very clear that London still welcomes foreign investment and foreign investors. He warned against “slamming the door” or “turning our noses up at foreign investors” sighting such international investment as Battersea power station redevelopment, Elephant and Castle and then drawing on a story of the stone used to build the Tower of London, the oldest continuously occupied building in London, being imported from France.
He made the point that only six or seven percent of homes were sold to foreigners which has remained the same level as far back as 1990. So many times figures are being quoted that 60% of new builds in the capital are being sold to foreign investors, especially to Asians.
The current undercurrent of dissent amongst locals has seen the pressure from politicians has seen 60 of the largest developers signed up to the cew build concordat, which basically means they agree to launch properties in London to UK investors first, “or at least at the same time as internationally.”
He then went on to paint a picture of Vision 2020 project which will see 42,000 homes a year being build 400,000 in the next 10 years. 33 separate opportunity areas are being identified and when asked where these the space for these properties would be found his comment was “look east, towards the Thames Gateway”. Good news for property investors!
All in all his presentation was very upbeat and affirms that London property and the UK market are back on top. He stated a number of times that London was and still is the world’s capital and a favourite place to invest for foreign investors and that they are still very much welcome to invest in property.
Live with passion and fun,
PS. Myself and Mark Montes (Director of New Homes) are at MIPIM all week so we will be sending a variety of articles through on the happenings.