Almost 70pc of London buyers from overseas

Published 06th Jul 2010

Seven in ten London homes worth more than £5 million are being bought by foreign investors who are capitalising on the weak pound, latest figures show.


The number of wealthy foreigners buying top end homes in the capital has jumped by almost 20 per cent in the past year.

In June 2009, 53 per cent of those buying properties in the capital worth more than £5 million were bought by overseas buyers.

Now the figure stands at 68 per cent, according to the research carried out by estate agents Knight Frank.

The weakness of the pound against other currencies such as the dollar means foreign buyers can secure huge discounts.

Knight Frank suggested buyers from China, the US, Saudi Arabia, Singapore and Malaysia can secure discounts of up to 31 per cent.

It said prices of prime central London properties had risen by 0.9 per cent in June, meaning they stand 20 per cent higher than a year ago.

Liam Bailey, head of residential research at Knight Frank, said: “The recovery in prices has been driven in large part by the strength of demand from international buyers.”

But he added: “Despite the fact that prices have risen, the weakness of the pound ensures that effective discounts available to foreign buyers are still very significant.

“Central London is now a market apart, not only is demand seemingly immune from wealth attacks, but so too is supply.”

The proportion of un-mortgaged owners in central London is 59 per cent, compared to 41 per cent for Britain.

Jonathan Cornell, of mortgage brokers First Action Finance, said: “Despite austerity packages announced by most of the western Governments, there are some incredible wealthy individuals with cash burning holes in their pockets. With the weakness of the pound, prime London property looks good value.”

Source: ' Telegraph '

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