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Foreign Buyers Push Up Prime London Prices

Research from Knight Frank reveals that foreigners bought more than half of London’s homes sold for over £2m during the past year.

Liam Bailey, Knight Frank’s head of residential research, said wealthy foreigners were increasingly attracted to buying luxury London property as a “safe haven investment” at times of political turmoil in their home countries.

Also the fall in the value of the pound has made London more appealing. Mr Bailey said the foreign interest had pushed the average price of prime central London property up by 57% over the past four years, with prices predicted to increase by a further 26% by 2018.

Buyers from Russia bought 8.5% of all London properties worth more than £2m between March 2012 and March 2013, while buyers from UAE, US and China each accounted for 2.8% of purchases. Buyers from eurozone countries accounted for 9.5%. India accounted for 2.6%, Hong Kong 1.8% and Switzerland 1.1%.

Source: The Guardian

We say: One factor which still favours non-resident investors over domestic ones is the incomprehensible reluctance of the government to follow the lead of practically every other country on the planet and charge CGT to non-residents on property located here.

All views expressed in the BKL Blog are those of individual contributors and may not reflect those of Berg Kaprow Lewis LLP