Far East Investors Being Misled In Britain

It has emerged that a number of property investors originating from Far East Asia, have been subjected to misleading statements when it comes to purchasing property in the UK. A recent news story exposed a property developer who was charged with misrepresentation last year, of informing a Hong Kong businessman that his four bedroom apartment was a 40 minute walk from central London. In actual fact it was a 40 minute train journey, by high speed train. The businessman later had his £35,000 deposit paid back when the case went to court.

This story is one of many that are beginning to be made public as more UK developers target investors who have not viewed properties, in places such as Hong Kong, Shanghai and Singapore.

Since the financial crisis British buyers have been struggling to get mortgages, so developers need business from other countries. Therefore, UK developers created greater interest in their properties ‘bending the truth’ about some of their property’s locations and competitive demand.

During these difficult financial times, it has been even more important for foreign investors to cover themselves and their property with overseas property insurance.

A former chairman at HSBC Asia, David Eldon, said “It is a matter of developers saying, ‘Here are some people who are likely to be interested. They probably do not know too much about the market, so why don't we advertise there'. I think they are being a little economical with the truth.”