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Connecting Asian Investors to the UK

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1. The world’s most open, free and secure investment markets

Regardless of whether an investor has a UK visa, has been to the UK, or whether nor not they live in the property they invest in, an investor can buy property in London. There is no restriction on an investor’s right to purchase a property.

London ranks first in the world in terms of comprehensive strength in politics, economy, culture, education and much more. The legal protection of private property rights and the reliable quality of real estate construction have withstood the test of hundreds of years, ensuring that London has become one of the most open and free markets in the world. This is the reason London has become the city with the largest number of billionaires in the world, the safe deposit box and safe investment paradise for the world’s richest people.

2. London real estate is a must for large institutions around the world

The world’s major investment institutions favour London real estate. In the process of asset structure adjustment and international asset allocation, London real estate has always been the first choice for investment. London has been the world’s most popular destination for overseas investors for years, according to several large institutions.

In recent years, many large Chinese businesses and institutions have been investing in London. For example, there have been investments from Chinese national sovereign investment funds, such as CIC, Ginkgo Tree; the Bank of China; the Industrial and Commercial Bank of China; the Construction Bank of China; China Life; Ping An Insurance; as well as developers and investment companies.

In 2016, £8.63 billion was invested in London, with £1.02 billion of that invested in the property market. In 2017, £3.69 billion was invested in commercial real estate in London by Chinese investors.

3. Long-term stable high rate of return

The average annual net return of London’s real estate in the past 10 years is 9.4%, of which the increase of house price is 6.4% and the net return of rent is 3.0%. Among all types of investment products, it is not difficult to achieve a return rate of 9.4 percent a year. For 70 years after the Second World War, the average annual net return on London property has been stable at between 7 and 10 per cent, and for decades it has outperformed stocks, bonds and inflation.

4. London real estate is in short supply

With chronic supply shortages, rising barriers to entry for developers, a severe shortage of construction workers and restrictions on available land, prices will continue to rise as demand outstrips supply for the foreseeable future.

Since 1980, the average annual supply of new homes in London has hovered around 16,000, according to the city of London, but annual demand has remained steady at least 52,000. London is expected to have a housing shortfall of 360,000 over the next 20 years.

5. Population growth and rigid demand

Incomes in the UK are rising fast, and demand for housing is strong. In 2019, London’s population is around 8.8 million, and is set to reach 9.54 million by 2026. It is expected there will be an increase in jobs of around 50,000 a year, leading to 6.9 million jobs in London by 2041.

This growth and the lack of available housing will lead to price increases and better returns. Additionally, investing in construction will lead to potential high returns.

6. The property purchase and holding taxes are reasonable

Similar to buying property in China, there are costs associated with buying property in London. However, from the intermediary and lawyer fees during the purchase, the property holding fees after the purchase, to the income tax due on the future sale of the property, tax in the UK is relatively low compared to developed countries around the world.

For example, all owners of property, unless renting out, have to pay Council Tax, which is a municipal property tax to the local government. This tax is used to pay for local government public service facilities, such as libraries, schools, transportation, garbage collection, sanitation and so on. The amount due will depend on various different factors, but accounts for around 0.01% to 0.04% of the current housing price, again depending on different factors. However, compared to the US, this is relatively low, with an average US property tax being between 0.12% to 3.05%.

7. London’s public facilities and universities

If you chose to do more than just invest in London, and decide to invest yourself there, then there are many great facilities available. There are free and paid for museums; libraries; public green spaces such as Hyde Park; and historical and cultural attractions such as Buckingham Palace, the Tower of London, and the Houses of Parliament. Additionally, there are great entertainment such as theatre at the West End, various football clubs, and numerous other activities on a daily basis.

If you choose London as the destination to live by yourself, you will appreciate the convenience of London’s numerous free museums, libraries, historical and cultural attractions, and public green Spaces, and learn through lively activities, so that children and themselves can enjoy life every day.

London is also the main home to some of the world’s top universities. From the London School of Economics, Imperial College, and University College London, it is also a short drive away from the two best universities in the world, Oxford and Cambridge. This offers a world-class education for children in a safe and comfortable environment for families.

8. Financial Centre of the Business World

It is not breaking news that London is the world’s top financial centre, but it has also become the focus of the international entrepreneurship circle, with the world’s second Silicon Valley technology city, the world’s top biomedical research park, and the fashion and creative industry innovation park. This will lead to even more high-income jobs being created and offering more opportunities to invest in property or even business.

9. London properties are highly liquid and easy to cash in

As an investment product in overseas asset allocation, liquidity is very important. As one of the most transparent real estate markets in the world, London real estate market is the world’s most liquid market, with a. The average London home is on sale for 41 days, according to investment professionals in the UK.

10. Eco-environment and sustainable city

London is a perfect integration of tradition and modern city, and it also combines nature seamlessly. Such a living environment makes many people flock to it.

London has the largest green space per capita in the world. It has a pleasant climate in four seasons, 40% green area and more than 100 parks. Take the current season as an example. In the extremely hot summer in China, the average temperature in London is around 17 or 18 degrees. Although the latitude of London is higher than that of Harbin in China, the temperature in London seldom falls below zero in winter.

As for the peace, security and stability of the social system, London is recognized by the world. For nearly 400 years, Britain has been free from civil war (the main battlefields of the first and second world wars were in continental Europe), political stability, fair legal system, and a complete welfare system (public medical care, public education for primary and secondary schools, and universal pension benefits).

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