Wealthy overseas families rent before buying

London landlords are attracting wealthy overseas families who want to rent before choosing where to buy, according to a lettings agency.

Benham and Reeves say relocating families use the time to assess neighbourhoods, schools and their daily commute before committing to a purchase.

Its director, Marc von Grundherr, says this brings prospective tenants to areas popular with international buyers.

The comments accompany research into property titles held by overseas companies, which records ownership rather than letting activity.

Renting before buying

Mr von Grundherr said: “For many international buyers, purchasing a London property is a long-term decision.

“Wealth preservation and investment potential are important considerations, but those relocating with their families are also looking at the quality and safety of a neighbourhood, lifestyle, connectivity and, very often, access to London’s leading schools.”

He added: “Renting first allows them to experience everything from the school run and daily commute to the restaurants, parks and wider lifestyle of a neighbourhood.

“Once they’re confident, they have found the right location for their family, many then make the transition into homeownership.”

Overseas company ownership

The firm’s analysis of Land Registry overseas companies’ ownership data identified 91,136 property titles held by overseas-registered companies across England and Wales.

Greater London accounts for 39,172 of those titles, or 43% of the total.

The capital has more such titles than the South East, North West and Yorkshire and the Humber combined.

These figures cover ownership through overseas-registered companies rather than individual foreign ownership.

Prime London locations

Westminster has the largest concentration within London, with 9,666 titles held by overseas companies.

Kensington and Chelsea follow with 4,958, bringing the two boroughs’ combined share to 37.3% of the capital’s total.

Outside those two boroughs, Tower Hamlets accounts for 5.9% of London’s overseas-company-owned titles, ahead of Camden at 5.3%.

Mr von Grundherr says international buyers take a long-term view and may see softer house prices as an opportunity to establish or increase their holdings.