Private wealth management 'turns towards London'

International private wealth management advisers may be promoting London property as a solid investment in the wake of the recession.

Falling property prices combined with a weak pound could have tempted individuals interested in wealth management to convert their assets to property in the capital.

A report by Savills shows 55 per cent of purchases of central London buildings in the last year were from overseas, up from 45 per cent when the market was at its peak in 2006 and 2007.

Nigel Ellis, director at Pricket and Ellis estate agents, described the current climate as offering ’bargain prices’ to the foreign investor.

He noted a reduction in prices in international terms will lead to a rise in international buyers, but said the falling prices still benefited domestic speculators.

Wealth management through property investment could still be attractive to UK residents. A weaker market means property remains a good deal compared with prices before the recession. Mr Ellis suggests British individuals are buying more in the suburbs, leaving central London to foreign investors for now. ADNFCR-2318-ID-19826430-ADNFCR