The press has been full recently of the "evils" of foreign investment, particularly in London developments. We are told that foreign investment leads to "ghost towns" and gives nothing back to the local economy. The truth is that investment (whether foreign or local) leads to new properties available for rent or buy, it encourages more development in a city which is known for having a housing shortage and enables more social housing to be built. As can be seen in the article below, investment is increasing in the private rented sector and there is an increase in "built for rent" developments. Can we really say this is a bad thing?
Whether renting or buying, the price of property is guided by basic economics and market forces and we should be welcoming investment to encourage house building as only by shifting the scales to increase the supply will prices be able to drop.
There is growing appetite among City institutions to invest in big rental schemes, which offer steady income. Demand for rented accommodation continues to rise, especially in London, as many people cannot afford to buy their own home.