There have been many winners from London’s rise to Europe’s pre-eminent financial center.
From the restaurants and bars scattered among the alleyways and narrow streets of the City to the luxury car dealerships and clothing boutiques which have sprung up to serve increasingly well-heeled suburbs, the trickle-down from the billions of pounds washing through the UK capital has been transformative.
Even among these beneficiaries, property stands out.
The strength of the London housing market, which has outpaced almost every other asset class during the financial crisis, owes much to financiers’ predilection for owning bricks and mortar within commuting distance of their offices.
Bankers have poured into certain postcodes, supporting prices and creating a ripple effect for the value of housing stock in surrounding areas. Meanwhile, the rest of the UK housing market struggles to bounce back from the price declines experienced in the wake of the financial crisis.
The capital growth on offer in residential property is another reason it has proved such an attractive buy – the strength of demand has not only decoupled London house prices from the rest of the UK, but also from rival financial hubs.Page 1 of 4 | Next Page