Property investors view sterling as good hedge against Eurozone
Property investors around the world are increasingly viewing Britain as a good place in which to make a purchase, analysts have noted.
According to Alex Michelin, co-founder of Finchatton, the UK is particularly popular because it is a "safe and secure" market, when compared with many other European nations.
Indeed, he noted that sterling provides a good hedge against the dangers posed by the eurozone amid its ongoing debt crisis.
"London also has a long track record of stable growth, supported by the great schools on offer," Mr Michelin observed.
Author and property investor Dr Rohan Weerasinghe added that the UK market is proving to be especially popular with people from Italy.
This, he stated, is partly because it offers relatively high yields, even after they have paid their mortgage costs and other necessary expenses are factored in.
Dr Weerasinghe noted that yields in the UK can often be anywhere between five and 20 per cent, depending on the type of property they purchase and the investment strategy they choose to adopt.
"This is very appealing to many investors from overseas as it provides them with a sterling-based income that can be used to support their lifestyle outside of the UK," he commented.
Britain was also said to be appealing to foreign investors because the UK's lending criteria are not as strict as Italy's.
Dr Weerasinghe stated that while investors in Italy can have "their personal income and assets used against them", this is not the case in Britain.
He described lending towards buy-to-let investments in the UK as far more relaxed, with the property being treated as a business. This, he said, means a person is free to own more than one property.
Many Italian investors currently find this very appealing, Dr Weerasinghe remarked, before adding "there are even specific mortgages available for overseas investors".