That’s according to residential fund and asset manager London Central Portfolio (LCP), which specialises in prime London residential property. Today it predicted that investors will retrench to blue-chip tangible assets as uncertainty on the political and economic stage is heightened once again and benefit the prime London residential property market.
Chief executive Naomi Heaton told Mortgage Solutions: “My feeling is that it will have a positive impact. After the global financial squeeze in 2009 the two main beneficiaries were gold and central London property because people fly to quality if they feel uncertain.”
Heaton said the stock markets are likely to remain volatile and that investors will seek tangible assets. After the fall in the value of the pound following the Brexit vote, she said we have already “seen dollar denomination investors coming to London because suddenly they can buy at a 20% discount and now they have the additional incentive of a safe haven”.
In addition, she said Middle Eastern investors, who already have a strong London presence, are likely to feel less comfortable investing in the US in the current environment.
“Globally we are in a time of turmoil with anti-establishment rhetoric and voting – Brexit, Europe and now the US. With global uncertainty there will always be a retrenchment and that will have a positive impact. I don’t know how that will play out and how strong it will be, but there will be an upside for the sector,” she said.