Foreign home ownership in London swells by £6bn but oligarch exodus to slow cash influx from abroad
Internationally-registered homes in London increased by £6bn last year, but the impact of Russian sanctions is expected to slow the rate of growth in the market.
Despite the pandemic, there was a four per cent increase in the number of houses registered to buyers overseas, up to 84, 451, according to new numbers released by estate agent Benham and Reeves.
The biggest increase in foreign property ownership was in Hackney, which had a 15 per cent rise, with Greenwich, Lambeth and Tower Hamlets closely behind.
The £59.3bn-worth of overseas-registered homes is a £6bn-increase on the pandemic year of 2020, with only one borough, Haringey, experiencing a drop.
In wake of Russia’s invasion of Ukraine, and sanctioning of oligarchs linked to the Kremlin, Marc von Grundherr, director of Benham and Reeves, said “there will be one segment of the international buyers that are sure to be absent for the immediate future, at least.
“However, what we’re sure to see is yet further proof that London is the destination of choice for global buyers of all shapes and sizes, not just those from a few select locations.”
Westminster topped the list for both the highest sums for homes, amounting to £12.5bn, and the biggest increase, of £2bn. Other big movers were Camden, and Hammersmith and Fulham.
The pandemic and travel restrictions “contributed to a sluggish London performance when compared to the pandemic property market boom that took place elsewhere across the UK” he said, but the market is returning to normal.
“Not only are transactions climbing, but the values being paid have also increased considerably, particularly across the prime London market, and this is a sure sign that the London market is on the up,” Von Grundherr concluded.