Newspaper article The Evening Standard (London, England)

Foreign Super-Rich Drive out 'Old Money' British Elite Can't Compete over Prices for Prime London Addresses

Newspaper article The Evening Standard (London, England)

Foreign Super-Rich Drive out 'Old Money' British Elite Can't Compete over Prices for Prime London Addresses

Article excerpt

Byline: Jonathan Prynn Consumer Business Editor

LONDON'S "old money" elite are being priced out of their traditional neighbourhoods such as Chelsea, Mayfair and Hampstead by super-rich foreign buyers, a major study reveals today.

Central areas that were dominated for centuries by British aristocrats and top-earning professionals from banking and law are rapidly turning into often-empty "safe havens" for international capital, it concludes. About half of properties in "prime" central London addresses are bought by foreigners, contributing to a 75 per cent rise in prices between the 2008 financial crash and 2014, although they have fallen back slightly since then.

The two-and-a-half-year study the biggest of its kind found that this process has forced the younger generation of wealthy families to consider moves to postcodes their parents and grandparents would have shunned.

Dr Luna Glucksberg, who conducted the research for the International Inequalities Institute of the London School of Economics and Political Science, said: "The study shows that the wealthy individuals and families that live in London's most exclusive areas no longer feel able to compete at the top end of the capital's property market. Instead they feel like they are being pushed out of elite neighbourhoods.

"For the first time, this elite group are buying flats for their children in areas they never would have previously considered. Families from Chelsea are buying flats for their children south of the river because they feel they cannot afford to buy anything nearby."

This in turn was contributing to house price rises in areas such as Battersea and Clapham, she said. This process of displacement by sheikhs and oligarchs was also leading to feelings of "both overt and covert racism", she added. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.