The GV Perspective
Autumn 2016

The weaker pound, as well as long overdue price adjustments, has led to increased interest from foreign investors in the prime central London market. In the short term this is encouraging for transaction levels, although these are likely to remain mooted until the market receives more clarity following the triggering of Article 50. It is also encouraging that demand has begun to strengthen in higher-price brackets across the prime central areas of the capital, an indication perhaps of the global appeal of London. At Golden Venn we believe that presently, more so than at any other time since the economic crash, investors who are seeking either yields or capital appreciation have to adapt to, and consider less conventional opportunities. These include purchase of commercial property or residential property in outer London areas where annual growth remains in double digits. As prices in prime areas have risen, buyers have sought to purchase further out where property is more affordable, and with the imminent arrival of Crossrail, higher demand and shortage of supply have led to sharp increases in house price growth in these areas (Reuters). Commercial property has also been quite active. Yields in growth sectors, such as student accommodation are stronger than for residential property and such purchases are not subject to the same heavy burden of property taxation. At Golden Venn overall we remain positive and seek to capitalise on any opportunities permeating the current market conditions.