South African investors can now take advantage of the residential property boom in London.

South African investors can now take advantage of the residential property boom in London.

An innovative partnership between Sanlam Private Investments (SPI) and Global Asset Systems (GAS) gives local investors reliable returns on property in the UK.

SPI believes that UK-based real estate, considered a low-risk, low-volatility asset with the prospect of reliable returns, offers South Africans a hedge against the depreciating rand.

Daniel Kriel, SPI's chief executive, said: "Buy-to-let properties are an effective hedge against a depreciating rand and London property represents an excellent opportunity for capital security and a potential income stream that is built in.

"With relatively low interest rates, such investments are attractive given that demand for good rental property in London is expected to exceed supply for the foreseeable future," Kriel said.

With the Olympic Games taking place in the UK in 2012, property values are expected to improve further.

For the past 35 years London properties have achieved an average yearly growth rate of more than 11percent.

GAS Properties is a Cape Town-based real estate company specialising in offshore portfolio diversification, focused primarily on residential property in the greater London area.