Investors in U.K. expand interest beyond London
U.K. property investment in 2014 increased 11 percent to £52 billion ($80 billion), according to the U.K. Investment Market Update report for fourth quarter 2014 by DTZ. The primary cause was a 40 percent jump in investment activity outside central London, which increased from £26 billion to £36 billion ($40 billion to $55 billion). In contrast, the central London transaction total fell by 10 percent, from £22.4 billion to £20 billion ($34.5 billion to $31 billion).
Foreign purchasers increased their spending outside central London by 82 percent in 2014, from £7.2 billion to £13.2 billion ($11 billion to $20 billion). According to DTZ, a key driver of the increased investment outside central London has been the search for higher yields by both U.K. and foreign investors, following falling yields in the capital. U.K. spending by foreign purchasers increased by 26 percent, from £22 billion to £28 billion ($34 billion