Swiss investors turn to London property
High net-worth advisers could benefit from wealthy Swiss nationals seeking financial refuge in the capital after the Swiss currency nose-dived, Naomi Heaton, chief executive of London Central Portfolio, has said.
Ms Heaton cited an increase in capital inflows into the London property market after the Swiss National Bank announcement to abandon the franc’s cap last week, with prime property already being sought after by high net-worth Swiss.
She said: “A flow of safe-haven seeking investors has already begun to focus on central London, which has, in the blink of an eye, become substantially cheaper for them, against a backdrop of Swiss banks now charging customers -0.75 per cent for holding their money. This may presage a new international investment dynamic in this market.”
The residential fund has seen a number of enquiries from Swiss-based wealth managers and investors looking to move their money into London property.
Tim Kemp, chief executive of Leigh-on-Sea, Essex-based Kemp Private Finance, said: “I have already received numerous calls from investors wanting to move their money out of Switzerland.”
The move came following the removal by the SNB of the EURCHF floor, and a further cut in the deposit rate from -0.25 per cent to -0.75 per cent.
Adviser View
Simon Webster, managing director of Kent-based Facts & Figures Financial Planners, said: “While it is good for the economy, on the back of the increase in stamp duty, the ongoing international attraction of London property makes it increasingly difficult for the people who live here. The underlying message from this, though, is how wise we were to stay out of the euro.”
