Overseas Brics and mortar demand drives UK property

Posted: 20 Feb 2007 11:03:31 GMT

Property price growth in the UK, already supported by supply and demand pressure, will be boosted by overseas investors in the next few years, says agent Knight Frank

Property price growth in the UK, already supported by supply and demand pressure, will be boosted by overseas investors in the next few years, says agent Knight Frank.

In particular, the study said that investors from the tiger economies of the so-called Bric states – Brazil, Russia, India and China – are looking to the UK for secured returns.

An appealing tax regime, stable political environment and a strong and lightly-regulated economy are among the factors drawing investors to the UK, alongside capital growth.

"Average house prices in central London have tripled in the decade to 2006," said Liam Bailey of Frank Knight.

"A substantial part of this increase is due to the presence of overseas buyers in the prime locations, diminishing the overall available housing stock.

"We believe that UK tax, regulatory and financial pull factors will encourage continued growth in buyer demand from the Bric nations."

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