London accounts for 43% of all property titles owned by overseas companies across England and Wales, new analysis of Land Registry data reveals.
There are currently 91,136 titles registered to overseas companies across England and Wales, according to research by Benham and Reeves using the latest Overseas Companies Ownership Data.
Some 39,172 are located in Greater London, putting the capital well ahead of every other region.
The South East ranks second with 14,919 titles, equivalent to 16.4% of the total, followed by the North West at 11.6% and Yorkshire and the Humber at 6%.
PRIME LONDON
Ownership through overseas companies is particularly concentrated in London’s prime central markets.
Westminster contains 9,666 overseas-company-owned titles – almost a quarter of London’s total – while Kensington and Chelsea has 4,958.
Together, the two boroughs account for 37.3% of all London property titles held through overseas companies.
But ownership extends beyond traditional prime central London.
Tower Hamlets accounts for 5.9% of the capital’s total, followed by Camden at 5.3%, Wandsworth at 5%, Lambeth at 4.4%, Southwark at 3.8% and the City of London at 3.6%.
INTERNATIONAL APPEAL
Marc von Grundherr (main picture, inset), Director of Benham and Reeves, says: “London’s position as a destination of choice for high-net-worth international buyers has been built over decades and isn’t dictated by the recent period of house price stagnation.
“Of course, this particular data relates specifically to property owned through overseas-registered companies rather than individual foreign ownership, but the sheer concentration within London is another indication of the international appeal that continues to underpin the capital’s property market both on personal and professional levels.
“For many international buyers, purchasing a London property is a long-term decision. Wealth preservation and investment potential are important considerations, but those relocating with their families are also looking at the quality and safety of a neighbourhood, lifestyle, connectivity and, very often, access to London’s leading schools.”
RENT BEFORE BUYING
Von Grundherr says Benham and Reeves also sees international buyers initially entering London’s rental market before deciding where to purchase.
He adds: “We also see this international demand very clearly within the rental market. Many high-net-worth families relocating to London will rent before they buy, particularly when they are unfamiliar with the nuances of the capital and want to be certain that an area works for them before committing to a significant property purchase.
“Renting first allows them to experience everything from the school run and daily commute to the restaurants, parks and wider lifestyle of a neighbourhood. Once they’re confident they have found the right location for their family, many then make the transition into homeownership.
