MIPIM: Tax hikes in Paris combined with the liquidity of London’s assets means the UK capital is a first port of call for overseas investors.
And its supremacy can be assured for at least another decade, according to a selection of UK property’s movers and shakers at an Estates Gazette debate held at MIPIM today.
“London stacks up significantly in Europe,” said Becky Worthington, the former Quintain deputy chief executive, who recently set up her own company, Lodestone Capital.
“It’s a world-class city, it’s probably the pre-eminent financial services centre of the world and that, combined with everything from a stable, strong legal environment, time zone and language, makes London the best location in Europe for investing.”
John Slade, UK chief executive of French-owned BNP Paribas Real Estate, said it was in the interests of other major European cities to work alongside London as investment would feed through.
“There isn’t the supply in London to satisfy what investors want to buy, and that’s the main reason why prices are so stable, so they’ll go to cities like Paris, Frankfurt and other German cities; those cities complement each other rather than compete.”
However, a 75 per cent tax on the wealthy, expected to be ushered in by left wing French president Francois Hollande, would not help Paris, according to David Marks, Brockton Capital founder and soon-to-be president of the British Property Federation.
The debate, sponsored by BNP PRE, was chaired in front of an audience by EG editor Damian Wild in the London Pavilion at MIPIM in Cannes.
They were joined by a 100-strong online audience, who tuned in to a live stream, making it one of the biggest combined audience events in UK property.
James Petit, head of real estate UK & Ireland at Deutsche Asset & Wealth Management, said strong London investment was also good news for the regions, with investors needing to diversify.
“Undoubtedly, investors will move away from London, too, and we’ve seen that already with the purchase of One Angel Square, Manchester by two of our investors – that presents a long-term 25-year income stream that they can hold to for some time. Other funds will begin to diversify into regional offices and the big retail centres, too.”
Click here to listen to the full debate.
rebecca.kent@estatesgazette.com
