Foreign Cash Byers in Ealing
Ealing, like London in general, is seeing many foreign cash buyers arriving on the property scene. With continued global distress, particularly in the Eurozone, the UK is seen as a relatively safe haven in the storm.
Ealing in particular has become attractive to foreign buyers. With revitalisation programmes moving forward, quiet residential avenues with abundant green space, and a thriving economy, we are seeing more foreign investment in both commercial and residential properties.
Housing prices in Ealing are up 2.6% over a year ago and up 2.5% over last quarter. The biggest gains were made in detached housing, which is up by over 13.7pc over a year ago and 5.5% on the quarter. The average price of a detached home in Ealing has now climbed to £1.07m. Only semi-detached homes have seen both a yearly and quarterly decrease in our area. Rents are not immune from the inflationary trend, either. According to Foxtons, the average rental value is up to £563 per week. As one might guess, much of the recent activity has been on the upper end of the price spectrum.
For homeowners, this is indeed good news – on its face, at least. Sellers have been diligently waiting for better times in order to recover some of the value lost during the global economic crash. Prices have been slow to recover, largely due to strict lending restrictions. The influx of foreign investment has been a boon to the local market in recent months. The availability of cash buyers circumvents the finance industry’s stranglehold on the property sales market.
The downside to this, of course, is that there is less opportunity and fewer homes for current Ealing residents and city dwellers looking west toward Ealing as an alternative to the city centre. One important question arises as to what effect, if any, this trend will have on lending. Cash buyers cut out the banks and deny them the opportunity for a good property investment. Perhaps it will be a wake-up call to lenders.