Over the past year or so, the United Kingdom has garnered a reputation as an investment safe haven from troubled parts of the globe, especially the euro zone. Property investment is seen as a strong medium for gaining exposure to the United Kingdom’s safe-haven status and UK property, especially in London, has witnessed an increase in capital flows from foreign investors. However, this has occurred against a backdrop of particularly worrying economic fundamentals.

SAFETY IN NUMBERS?

There are clear reasons in favour of the United Kingdom deserving safe-haven status. Despite the threat of fallout from the euro zone crisis affecting the United Kingdom, not being part of the single currency union is perhaps the most significant reason. Unlike the euro zone, the British government implemented a credible fiscal strategy and austerity measures relatively quickly after the market turned a spotlight on its finances. This allowed the United Kingdom to be seen