Mail Online UK: Overseas buyers leave luxury London property market but British buyers move in
Wed 16 Dec 2015
Overseas buyers have helped to boost average London prices to 500,000 But they are are now leaving themarket amid higher stamp duty costs Domestic buyers now account for 79% of house purchases in the capitalWealthy overseas buyers are leaving the posh London property market, new research suggests.
They have dominated the market in the past few years, helping to push up average prices in the capital to 3 shyof 500,000.
But several factors - including higher stamp duty fees - are beginning to take their toll, according to the researchby estate agent Marsh & Parsons.
It found that the number of property purchases by overseas buyers dropped to 21 per cent during the threemonths from July to September, down from 25 per cent during the same period a year earlier, according to theresearch by estate agents Marsh & Parsons.
Domestic buyers are moving in where overseas investors in London's property market have left off
The decline is blamed on the strength of sterling and stricter Government measures on non-domicile status, aswell as higher stamp duty fees.
The Government overhauled stamp duty making it more expensive for those with higher value properties.
For those with properties worth less than 937,000, the changes have resulted in savings on the cost of stampduty.
The research found the shortfall on overseas buyers is being stemmed by domestic buyers.
It found the percentage of property purchases by domestic buyers was 79 per cent during the third quarter, upfrom 75 per cent a year ago.
Peter Rollings, chief executive of Marsh & Parsons, said: 'The London property market has had to grit its teethand bear the brunt of some rather trying taxation changes in recent months.
'At the high-end buyers are at the rock face of the new steeper stamp duty, and from overseas the strength ofsterling, and Government encroachments on nom-dom status make investing in the London property marketseem daunting.
'This has cast some shadows over the capital, but the millions of Londoners who live and work in the city haveacclimatised much more quickly to the property taxation changes, and have risen up to fill the void left byoverseas purchasers and investors.'
London's multi-million pound housing market has slowed down dramatically compared to previous years
He added: 'We're noticing longer purchase chains than ever as domestic buyers really start to dominate themarket, and demand is really putting a strain on supply. This should ensure that London houses prices and salesactivity continue their ascent into 2016.'
The increase in domestic buyers has seen demand for luxury London homes grow, with the number of registeredbuyers climbing 4 per cent in the third quarter.
There are currently 14 buyers for every available property for sale in London, increasing from 12 in the secondquarter and 10 at the end of 2014, the researchfound.