The Times Newspaper today reported that investors who have lost faith in the banking system are turning to property as a safe haven for their cash.
Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust.
The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands.
Lindsay Cuthill, head of the southwest London office of Savills estate agents, said: “Ten days ago a wealthy, well-known businessman seeking to buy a mews in Chelsea told me, ‘I feel my money is safer here than in the banks’.”
Many investors are also looking at countries like Morocco, largely immune from the present troubles in the financial system, as a “safe haven” for their investments. Michael Kent, Managing Director of leading Moroccan property company Moroccan Sands commented “We’re seeing an increase in enquiries from established investors who recognise that their money in safer in bricks and motar in Morocco than an Icelandic bank.”
“In constrast to the UK housing market, property in Morocco is rising in price and mortgages are freely available from the major Moroccan banks. So if you’re looking for a profitable long term investment the Moroccan property market looks extremely tempting at present.”
Markets such as Saidia on the Mediterranean coast and Tangier at the mouth of the Straits of Gibraltar are especially recommended as they are developing rapidly due to their geographical advantages and in both cases they are backed by massive private and public investment from which the individual investor can benefit.