International investors dominate the high end London market says a new survey.
Aston’s, a residency and citizenship consultancy, has analysed sold price records across London’s prime postcodes so far this year and found that the average sold price is currently just over £1.19m.
Despite Coronavirus, some 6,438 transactions have completed this year, mostly for the investment market.
With foreign buyers accounting for 41 per cent of this market activity, London has seen a boost of £3.32 billion thanks to foreign interest in the UK rental market.
The French currently account for the largest number of sales, accounting for 11 per cent of prime transactions by foreign buyers so far in 2020.
Buyers from Hong Kong and the USA have also been busy, each accounting for 9.2 per cent; meanwhile China and India account for 8.3 and 7.3 per cent of this niche respectively.
“Despite the current pandemic, foreign buyers continue to see London as an attractive investment, and this is evident based on the healthy level of transactions taking place and the sold prices secured” explains Arthur Sarkisian, managing director of Astons.
He says this demand is being driven on two fronts. “First of all, by the current stamp duty saving on offer, but also in advance of the additional two per cent surcharge for non-UK buyers which is due to be implemented in April of next year. We should see this demand remain strong right up until these deadlines at which point the market will return to a more recognisable level of normality.”
This post has originally been featured in Letting Agent Today.