The Global Capital
The Global Set...
Rather than the sales market, it is the rental sector which is most dominated by foreign activity.
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While international buyers may not actually dominate the sales market in London as generally assumed, international tenants certainly do for the rental market. More than half of tenants in the capital are from outside the United Kingdom.
In the first half of 2016, international tenants accounted for 57 per cent of renters in London but a significantly higher proportion in Prime Central London where they accounted for 70 per cent of the market. The proportion has been broadly stable in London as a whole but fell by four percentage points in Prime Central London compared with the same period last year.
Europeans make up the bulk of international tenants in both Prime Central London and London as a whole accounting for 34 per cent and 30 per cent respectively. Of individual nations, the US leads the way with 6 per cent of London tenants coming from the states followed closely by French and Italian tenants, 5 per cent and 4 per cent respectively. In Prime Central London, these country rankings remain the same albeit with higher proportions. American, French and Italian tenants make up 11 per cent, 9 per cent and 7 per cent of tenants respectively.
Looking ahead, following the vote to leave the EU, the future path of the international tenants market, particularly in the prime market, will be highly dependent on the economic outcomes of the vote to leave the EU. The reduction in the price of sterling since the vote, in addition to the weakening sales market there may encourage some to take the plunge and buy. There is also the question of how palatable our final deal with the EU in terms of trade will be to large global companies located in the UK to have a base in the EU.
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