Proportion of foreign buyers snapping up central London homes hits six-year high
The proportion of homes in prime central London bought by international buyers hit its highest level in six years in 2018 as foreign buyers cash in on a drop in the pound.
Fifty-seven per cent of homes bought in the capital’s most sought-after postcodes in the second half of 2018 were snapped up by an international buyer, according to a survey carried out by Hamptons.
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The figure jumped from 55 per cent in 2017 and is the highest level since the second half of 2012, when 58 per cent of purchases were made by overseas buyers.
The shift away from UK purchases continues the trend of rising demand from foreign buyers since the 2016 EU referendum, before which international customers bought only 40 per cent of homes.
The increase last year was due to both a decline in UK buyers and an increase in EU buyers, Hamptons said.
EU buyers regained their position as the largest foreign group, purchasing 19 per cent of homes in prime central London, which includes in-demand spots such as Chelsea, Mayfair, Victoria and Marylebone.
By contrast, the proportion of Middle Eastern buyers in the area has nearly halved, falling from 15 per cent in 2017 to eight per cent the following year.
Across Greater London the proportion of foreign buyers also hit its highest level in six years, hitting 31 per cent in the second half of last year.
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Aneisha Beveridge, head of research at Hamptons, said: “Sterling’s weakness, making it cheaper for many international buyers, seems to be outweighing Brexit uncertainty when it comes to foreign buyers making a decision on where to buy a home.
“A property that would have cost an EU buyer £1m in the first half of 2016 effectively cost £124,000 less in the second half of 2018 due to sterling’s depreciation.”