London’s outer boroughs draw foreign investors seeking cheaper housing, new rail links
- The western fringes of Greater London are set to benefit from convenient access to the City of London, Heathrow and Canary Wharf when Crossrail opens next year
London’s outer boroughs located near the soon to open Crossrail system are garnering attention from foreign property investors seeking cheaper alternatives to inner London housing, while still maintaining convenient access to the airport and main business districts, according to industry experts.
More affordable housing options are attractive to some offshore buyers ahead of the expected pinch from the additional levy on purchases by foreign buyers, not to mention economic uncertainties on the UK’s looming exit from the European Union, or Brexit.
Prime Minister Theresa May announced in October her government will begin consultation in January on a proposed 1 per cent extra stamp duty on property purchases by non residents in England and Northern Ireland.
It was milder than the government’s indication in September that it was considering a levy of 1 to 3 per cent to raise funds to help the homeless.
“Whilst an increase still wouldn’t be welcomed with open arms, the prospect of the potential size of it will at least be a relief for investors globally,” Andy Foote, director of developer SevenCapital, said.
“For medium to long term investors, where the goal is both capital growth and passive income, a 1 per cent surcharge, whilst it increases the initial investment, overall it will prove insignificant.”
