This article by Property Wire
on October 24th, 2013 reveals the large number of foreign buyers in
London especially in prime property market according to new research
from Knight Frank.
There has been a lot of talk about the huge number of overseas buyers
in London, especially in the new build prime property market, but a new
detailed analysis shows that only a small proportion do not live in the
UK.
Of all £1 million plus prime central London new build sales in the 12
months to June 2013, just 28% were to buyers not resident in the UK,
according to an analysis report from Knight Frank.
While most
analysis to date has concentrated on the nationality of purchasers, this
research focuses on a buyer’s residence. In a city as diverse and
globally connected as London, where, for example, 38% of inner London
residents were classified as foreign born in the 2011 census, this is
perhaps more accurate when assessing foreign demand, the firm said.
The research reveals that over the 12 months to June 2013 49% of all
£1 million plus sales in prime central London went to foreign buyers by
nationality and the 28% who were not resident in the UK were mostly
investors looking to earn an income by letting their properties to
Londoners.
To understand the scale of international purchases
across Greater London Knight Frank’s research team assessed a sample of
3,500 property titles for new build property purchased in the 24 months
to June 2013. This involved developments in all 33 Greater London
boroughs, with sales prices ranging from £200,000 to £5 million.
Residence
of ownership was based on the proprietor record in each title from the
Land Registry. Where there were companies or trusts the researchers took
a view that with the exception of registered social landlords, or other
obviously UK based entities, these records represented international
purchasers.
The research found that 51% of new build purchases in
the relatively small prime central London market were to UK residents
over the past two years. Across the remainder of inner London the
portion rises to 80%. In outer London, that is the remaining 19
boroughs, more than 93% of sales were to UK residents.
Overall the most number of foreign buyers come from Europe, the Middle East and Russia, the research also shows.
‘Our
estimate is that over the past two years 85% to 90% of all new build
purchases in Greater London have been to UK residents,’ said Liam
Bailey, global head of residential research.
‘When we considered
the two year period covered by our sample of new build sales records
there was no indication of a shift towards higher non resident purchases
over that period. While some developers have noted rising interest from
overseas buyers in areas outside central London, these appear to be
localised examples,’ explained Bailey.
‘Our research points to the
fact that the majority of demand for new build property in London from
overseas remains focussed on the relatively small and concentrated
market made up of the central London postcodes,’ he added.
Article Source: http://www.propertywire.com/news/europe/london-international-buyer-research-201310248384.html
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