Housing Market Investment
Latest reports are indicating almost half the annual bonuses given to London City workers' is expected to be invested in the UK housing market.
The annual bonus of City workers is estimated to be in the region of £8.8 billion. Around £4 billion is expected to to be invested in property according to experts exhibiting at the Homebuyer Show in March.
"The poll of estate agents, mortgage brokers and property investment professionals reveals a significant predicted uplift in market activity from City workers as they look to invest their extra cash in bricks and mortar," said Nick Clark, managing director of the Homebuyer Show.
Prime locations for property investors include locations in and around the City, as well as London Docklands, Knightsbridge and Chelsea. Returns for buy-to-let property are around six per cent a year.
"We have already seen a twenty per cent increase in customer enquiries over the last couple of month," explained John Stewart, of buy-to-let property investment company Estates and Lets.
"Whereas the West End tends to receive investment from foreign investors, Canary Wharf and E3 and E14 addresses are the most popular locations for the investment of city bonuses.
"Investors are increasingly looking to put their money into buy-to-let apartments, and these range in price from £220,000 for a one-bed apartment in E3 to up to £600,000 for a two-bed apartment in E14. There has also been a lot of interest in Stratford in the lead up to the 2012 Olympics."
While many City workers will spend their bonuses on property in London, many will also looking towards investing in overseas property.
Mr Clark added, "If investors are prepared to do their research, they will find exotic foreign markets where entry prices are still low but expected to increase rapidly over the next few years."
Date: 21.12.06
Related Articles:
> Housing Market Investment
> Affordable housing a hit with investors
> Plot of Land transforms into Plot of Gold!
> Is Land a Good Investment?
> Sarah Beeny discusses property in 2006
> Property or Stock Market?
> Property Investment in Wales
> Investment Property Frenzy!
> Investment company in £11m float
> Why Property Investment?
> Getting on the UK housing ladder
> Commercial investment enjoys record year
> The commercial property market
> Buy to Let Regulation
> Buy to Let Yields Up
> Buy to Let UK
> Commercial Property Introduction
> Land Investment
> Property Investment
> Investment News
