Out-Law / Your Daily Need-To-Know

Foreign buyers vital for London

Out-Law News | 22 Jan 2014 | 3:57 pm |

Foreign investors from just four countries hold twice the number of housing development sites in London as housing associations and affordable house builders, according to a report from property advisor CBRE.

According to reports in the Financial Times and Estates Gazette, the CBRE research outlines that foreign investment is essential to house building in London. In the past critics have said that foreign investment has had an inflationary impact in London.

According to the reports the research found that developers from China, Singapore, Malaysia and Qatar have consent to build more than 33,000 homes in the city with foreign investors taken as a whole having permission to build nearly two years' supply of housing in the capital.

Head of residential research at CBRE Jennet Siebrits told the Financial Times that foreign investors were taking on sites that domestic housebuilders could not handle. “The traditional housebuilder doesn’t have the clout or the capacity to take on these major sites – if foreign investors weren’t taking them up, nobody else would," she said.