The most profitable property companies in the UK are all based in the capital city of London, according to a new report by the property industry research group PropertyScore.
The research firm also found that most of the most profitable UK companies are owned by companies with an ownership concentration of just over 20%.
“The capital is home to a lot of property companies and there are plenty of good properties to be found there,” said Andrew Ritchie, CEO of PropertyScore UK.
“But there are a number of factors which make it difficult to find a great property company in the city centre.”
The capital’s property owners are the biggest group in the world.
They hold almost a quarter of all UK property sales and the top 10 largest companies in London are owned and managed by a combination of private equity, investment banking and financial services firms.
There are a range of reasons for this, according a report from PropertyScore: the high costs of building a property; the low returns on investment in some properties; the lack of competition for investment banking opportunities; the high cost of running a property company; and the lack and limited presence of a regulator in the property market.
However, the most popular reason for owning a property is money, the research firm found.
“It’s a pretty big part of our report, because it’s the biggest factor in determining whether a property can be bought,” Ritchie said.
“The biggest property owners in the country are probably the ones with the highest turnover.
That’s probably a reason why so many of them are still in business.”
A lot of the top property companies have an ownership share of less than 10%.
PropertyScore UK finds that the UK’s most profitable companies are all owned by property companies with a majority shareholding of less, from property developers and property insurers to construction companies.
The top 10 most profitable British property companies according to PropertyScore, by ownership share, 2016, 2016 Source: PropertyScoreUK/REUTERS”You might have a lot more competition for those [property] roles.
That means there’s a lot less turnover for those companies, so that makes them much more attractive,” he added.
Property scores UK’s 2016 report highlights the growing importance of building property in the financial services sector, which is dominated by private equity firms.
“The rise in the value of property is driven by a number people in the finance and investment world.
So it’s not just a matter of having a good property company,” Ritzer said.”
They have to be a property manager, they have to have an office space, they’re responsible for marketing the property, they’ve got to manage all the paperwork, they need to have a marketing team, they can be part of a management committee, so there are all these things that they need.””
They also need to be able to sell their property and make money, so it’s a very different business than a financial services company,” he said.
PropertyScore found that the average property cost in the United Kingdom was £1.4m (US$2.2m) and the average annual income in the industry was £15,000 (US $25,000).
The average cost of property in Scotland was £6,853 (US-$7,500) and in England, £9,099 (US-10,000) and £13,500 (US -15,500).