London Property - Home of Super Prime

London Mayor Urges Action on Putin-Linked Properties Amid Housing Crisis and Tourism Regulation

February 26, 2024 London Property - Home of Super Prime Season 10 Episode 11
London Mayor Urges Action on Putin-Linked Properties Amid Housing Crisis and Tourism Regulation
London Property - Home of Super Prime
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London Property - Home of Super Prime
London Mayor Urges Action on Putin-Linked Properties Amid Housing Crisis and Tourism Regulation
Feb 26, 2024 Season 10 Episode 11
London Property - Home of Super Prime

In this podcast episode, we delve into the flourishing super prime real estate market in London, driven by an international clientele and soaring prices. Despite concerns over Russian sanctions, luxury property sales have surged, particularly from buyers in the US, Saudi Arabia, UAE, and China. Cash purchases are rising, reflecting a shift away from traditional mortgages due to global economic factors. As demand remains robust and supply diminishes, prices are expected to climb, signaling continued strength in the super prime market. London Mayor Sadiq Khan urges action against properties linked to Vladimir Putin's regime, proposing the sale of assets to benefit those in need, including building low-cost homes. Additionally, the UK government is pushing forward with legislation to regulate short-term rental properties, aiming to strike a balance between supporting tourism and addressing housing availability for local communities. The housing crisis, exacerbated by post-Brexit migration, underscores the need for comprehensive solutions. Subscribe to our newsletter for weekly updates on the super prime property markets.

Maximize your property wealth with London Property. Turn challenges into opportunities. With expert knowledge and reach, we tackle the complexities and inefficiencies of the property market with you.

Show Notes Transcript

In this podcast episode, we delve into the flourishing super prime real estate market in London, driven by an international clientele and soaring prices. Despite concerns over Russian sanctions, luxury property sales have surged, particularly from buyers in the US, Saudi Arabia, UAE, and China. Cash purchases are rising, reflecting a shift away from traditional mortgages due to global economic factors. As demand remains robust and supply diminishes, prices are expected to climb, signaling continued strength in the super prime market. London Mayor Sadiq Khan urges action against properties linked to Vladimir Putin's regime, proposing the sale of assets to benefit those in need, including building low-cost homes. Additionally, the UK government is pushing forward with legislation to regulate short-term rental properties, aiming to strike a balance between supporting tourism and addressing housing availability for local communities. The housing crisis, exacerbated by post-Brexit migration, underscores the need for comprehensive solutions. Subscribe to our newsletter for weekly updates on the super prime property markets.

Maximize your property wealth with London Property. Turn challenges into opportunities. With expert knowledge and reach, we tackle the complexities and inefficiencies of the property market with you.

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prophecy bulletin by London property the home of super prime London super prime real estate market is flourishing, driven by an international clientele and soaring prices. Despite concerns over Russian sanctions, luxury property sales have surged, particularly from buyers in the US, Saudi Arabia, UAE and China, who accounted for 60% of transactions totaling 780 million pounds in 2023. Interest has also grown from India, Israel and Nigeria. cash purchases are on the rise, reflecting a shift away from traditional mortgages due to global economic factors. Our stamp duty and potential political changes may impact prices. demand remains robust, with London viewed as a stable investment in its global uncertainties. As supply diminishes, prices are expected to climb signalling continued strength in the Super prime market. London Mayor Sadiq Khan is urging the UK Government to take decisive action against properties owned by individuals associated with Vladimir Putin's regime. In a letter housing Secretary Michael Gove calm proposes selling off assets belonging to Putin's cronies, and using the proceeds to benefit those in need, including building over 4000 Low Cost homes in London. Cannes call follows the second anniversary of Russia's invasion of Ukraine, highlighting the urgency of addressing properties linked to Russian corruption or Kremlin ties. City Hall's analysis suggests that selling the 1.1 billion pounds worth of property identified as Kremlin linked could fund 1000s of affordable homes, potentially accommodating Ukrainian refugees fleeing Putin's aggression. While the government has sanctioned over 1700 individuals and entities, Khan remains concerned about financial trust that could obscure property ownership. The government asserts its commitment to cleaning up the property market, including increasing transparency around property owning trusts, however, can also express his alarm over the closure of the Ukraine family scheme, stressing the importance of supporting Ukrainian seeking refuge in the UK and with ongoing conflict. As discussions continue con emphasises the need for swift action to address property ownership linked to Putin's regime, and to provide support for those affected by the crisis in Ukraine. Over the past decade, Bitcoin has surged by nearly 5,000%, making it one of the most lucrative investments. However, London's property market has also demonstrated its worth boasting a yield of over 44%. According to a recent analysis by British estate agency foxtons in comparison with various investment options, London's residential property market stands out with only two assets outperforming it in terms of return on investment, after Bitcoin with its staggering 4,963% increase. The next best return was gold with a 66.8% return, in contrast to silver saw a more modest 22.9% rise, while the footsie 100 index yielded just 15.7%. The energy sector however, faced declines with WTI crude oil, Brent crude oil and natural gas experiencing negative returns, folks and CEO gigatonnes notes the evolving investment landscape with traditional assets facing volatility, while emerging markets like cryptocurrency boom. Meanwhile, London's property prices have surged with the average home value rising from 352,028 pounds in 2013, to 508,037 pounds in 2023, emphasising the enduring appeal of bricks and mortar in the capital. The UK government is pushing forward with new legislation that will require owners of short term rental properties in England including those listed on platforms like Airbnb to obtain planning permission. This move aims to address concerns over the proliferation of such properties, particularly in English seaside resort towns, where they have been seen to impact local housing availability and the competitive landscape for hotels and bn B's. Under the proposed changes, owners will need planning permission for future short term let's, with a mandatory National Register of such property is also being introduced. However, owners can continue to let out their main or sole home for up to 90 nights a year without planning permission. A new planning use class will be established for short term let's not use as a main home simplifying the regulatory process. The government's focus is on striking a balance between supporting the tourist economy and ensuring housing availability for local communities. Michael Gove Secretary of State for levelling up Housing and Communities emphasises the importance of these changes and giving communities more control over their housing situation. Tourism Minister Julia Lopez underscores the need to ensure both local residents and the visitor economy can thrive. Airbnb a prominent platform for short term rentals welcomes the introduction of a register, believing it will provide clarity for hosts and assist local authorities in managing housing impacts. The government stresses the long term housing plan, aiming to deliver suitable housing while empowering communities to decide what is best for their area. Overall, these measures aim to strike a balance between supporting tourism and ensuring housing needs a mat for local residents. A Tory MP asserts that the UK is housing crisis is exacerbated by post Brexit migration, with tenants now spending 40% of their disposable Then come on rent. Niall O'Brien formerly that levelling up Minister conducted an analysis revealing Britain's low homeownership rates and higher rents compared to the euro zone. In London where 67% of private renters are foreign born. The housing stock has grown by 10.7% since 2011. While migration accounts for 16.6% of the population increase intensifying housing pressures. O'Brien emphasises migrants are not solely responsible, but have worsened the crisis straining Government Solutions. He knows that a significant proportion of migrants receive more from the state than they pay in taxes, with only 15% arriving for work according to HM Revenue and Customs data. This reality hopes will enrich discussions on migration and its broader economic impacts. subscribe to our newsletter to receive our weekly bulletins and stay ahead of what's shaping the super prime property markets.