Distressed UK property market offers opportunities

It is hard to turn the page of a newspaper in Hong Kong these days without coming across an advert for property in London, and demand is set to stay strong according to Cordea Savills, an international property fund manager.

Buying property directly is one way to take advantage, but the UK’s credit crunch has also helped to create some more interesting opportunities. The availability of debt in the UK has been shrinking since 2006, with a further 22% decline in the year to November, and the situation is unlikely to improve as long as the eurozone crisis continues.

With credit in short supply, construction firms...