London Central Portfolio (LCP) is experiencing an influx of international buyers, willing to blind purchase properties in prime London.
The investment firm reported that 22% of acquisitions were bought sight unseen by overseas investors.
Andrew Weir, chief executive of LCP, said “LCP is a respected and trusted set of eyes and ears on the ground for our overseas clients.
“They trust us to identify market segments with good investment opportunities and to negotiate the best deals.
“We have been able to advise based on our intimate knowledge of the prime London market and our unique provision of a detailed financial model enabling our established clients to invest sight unseen.”
There are a few factors contributing to rising activity from overseas investors.
There’s the stamp duty holiday ending in March 2021, the anticipated 2% additional surcharge for overseas buyers in April, the appeal of an attractive sterling exchange rate, and most importantly the current discounted prices in the market compared to its peak in 2016.
There was also 21% increase in under 30-year olds starting new tenancies in Q3 2020 compared with same period prior year.