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London is mostly owned by overseas landlords. They regularly snap up 75% of all new homes and own almost all properties valued at over £1m, a total of about £60

London is mostly owned by overseas landlords. They regularly snap up 75% of all new homes and own almost all properties valued at over £1m, a total of about £60B That means that the normal economics of rents and interest don't really work because London properties are "investment assets" not homes. I expect the same is true in many capitals like New York or Paris.

dukeyukey 3y ago
I'd definitely like a source on this - it's definitely not true looking at my landlords, or those of friends (7 years in London now). I'd also be astounded if overseas investors owned most London properties over £1 million - the majority of Londoners own their own homes, and since the average price of a London home is around half a million, that makes for a huge number of millionaire owner-occupiers.
dnissley 3y ago
Are you implying that overseas landlords behave differently than local landlords?
- beaeglebeached 3y ago
  Yes, overseas owners are escaping capital controls in their own authoritarian countries. Banks and brokerages have to abide by strict KYC, AML, and reporting so theyre fucked if they park wealth there. Real estate is the last Wild West frontier.
- nonrandomstring 3y ago
  Well it's more that they're businesses, property "portfolios" etc. Businesses behave differently than individual owner-landlords. I know folks who had London property, rented it out for some time and when things got tough they liquidated it to get a nice place out in the country. That's kinda the "British dream". Businesses play a longer game. and hold in there, so London has always been a safe long term investment bet. Maybe those terrifying climate maps showing how much the Thames barrier is going to help in a few years have gotten their attention!
lkdfjlkdfjlg 3y ago
Aren't.... overseas landlords buy-to-let landlords? What are you trying to say?
quickthrower2 3y ago
The economics of rent have been weird for 20 years globally. It is because you make a loss on the rent in hope of capital gains and rent increases later. The lemon has been squeezed drier and drier. Every time I think house prices can’t boom any more they do. I now think it has less to do with fundamentals and more just a lack of housing vs. population and the fact that people earn or have amounts of money so it selects for the richer and the perpetual belief in bricks and mortar. Also a debt based money system encourages this.

dukeyukey 3y ago

I'd definitely like a source on this - it's definitely not true looking at my landlords, or those of friends (7 years in London now). I'd also be astounded if overseas investors owned most London properties over £1 million - the majority of Londoners own their own homes, and since the average price of a London home is around half a million, that makes for a huge number of millionaire owner-occupiers.

dnissley 3y ago

Are you implying that overseas landlords behave differently than local landlords?

beaeglebeached 3y ago
Yes, overseas owners are escaping capital controls in their own authoritarian countries. Banks and brokerages have to abide by strict KYC, AML, and reporting so theyre fucked if they park wealth there. Real estate is the last Wild West frontier.
nonrandomstring 3y ago
Well it's more that they're businesses, property "portfolios" etc. Businesses behave differently than individual owner-landlords. I know folks who had London property, rented it out for some time and when things got tough they liquidated it to get a nice place out in the country. That's kinda the "British dream". Businesses play a longer game. and hold in there, so London has always been a safe long term investment bet. Maybe those terrifying climate maps showing how much the Thames barrier is going to help in a few years have gotten their attention!

lkdfjlkdfjlg 3y ago

Aren't.... overseas landlords buy-to-let landlords? What are you trying to say?

quickthrower2 3y ago

The economics of rent have been weird for 20 years globally. It is because you make a loss on the rent in hope of capital gains and rent increases later. The lemon has been squeezed drier and drier. Every time I think house prices can’t boom any more they do. I now think it has less to do with fundamentals and more just a lack of housing vs. population and the fact that people earn or have amounts of money so it selects for the richer and the perpetual belief in bricks and mortar. Also a debt based money system encourages this.