Imogen Calderwood
SPANISH investors have been ploughing money into London’s booming property market in a bid to protect their savings, according to a study.
Research from the Said Business School, in Oxford in the UK, found a direct correlation between house price rises in certain parts of the UK capital and times of economic hardship in Spain.
London has become known as a safe haven for money, causing a continued and disproportionate rise in house prices compared to the rest of the country.
The study found that areas with relatively low income levels (where there are large concentrations of Spanish immigrants) experienced price bumps following the worst time of uncertainty in Spain over the past two decades.
This means that it isn’t just Spanish millionaires who have been insuring themselves against economic and political uncertainty at home.
According to a recent report in El Mundo, the number of officially registered Spanish residents in the UK jumped from 57,350 at the end of 2009 to 73,659 by the end of 2012, although the real number is estimated to be 150,000.
The highest numbers of Spanish-born residents according to the 2001 census were in Kensington, Regent’s Park and Chelsea all in West London.
London and the rest of the UK have a good, workable property market because people have the confidence to invest there and rarely get ripped off. All associated costs of buying and selling property are much lower than those in Spain and investors do not end up getting their properties demolished by a bunch of lunatics or face the numerous failings that the Spanish legal system has.
The UK legal system is far superior to that of Spain and if they want to compete and have a slice of the action, they should take note and learn something from it.
I doubt anybody would disagree that Spaniards buying property in the UK will fare much better than Brits buying property in Spain.
Spanish estate agents, dream on.
Jane,
Inventor’s invest to make money.