Investors wanting London’s booming housing market for their portfolios and the city’s universities for their children are killing two birds with one stone.
A real estate firm specialising in the Fitzrovia area of the capital, close to several of its leading colleges, says that 28 percent of all sales this year were to parents buying properties for their children, almost double 2012’s figure of 15 percent.
And it is the foreign parents that are buying most: three quarters of parents purchasing for their kids were from abroad, and such purchases accounted for 34 percent of all sales to foreigners.
The trend is set against a larger backdrop of rising foreign buying in the capital. In 2011, British buyers used to make up 65 percent of Hudson’s customer base; just two years later, foreign clients take up the same proportion.
And instead of blowing millions on status mansions, buyers of properties for their student children tend to target the 400,000 to 1.5 million pound price range, request long leases, and are looking to maximise their returns.