Some commentators in the real estate investment arena have suggested that the rioting experienced in London and elsewhere in the country this week could have a negative effect on the sector. Speaking to Reuters, property analyst at JP Morgan Harm Meijer said it is "not a huge disaster" but that a "small impact on estimated rental values" could be expected as a result of the disturbances.
Richard Lewis, property director of Town Centre Securities, warned that it could make international investors "more wary" about ploughing their money into certain parts of the city. However, senior surveyor for UK investment at Savills Jonathan O'Regan told the news provider that many investors will take a long-term position, adding that this will "pass as quickly as it came".
Prime central London real estate has been performing well in recent months, compared to the rest of the nation. Knight Frank recently revealed that both rental and capital values for properties in the city rose in July, with a lack of supply on the market and high demand from overseas investors driving the sector forward.