What Mortgage: Percentage of overseas buyers in London?s property market falls
Fri 20 Nov 2015
The percentage of overseas buyers in the London property market had dropped, a new study has revealed.
According to estate agent Marsh & Parsons, overseas buyers now account for 21% of all London sales, downfrom 25% a year ago.
The report said overseas investors were leaving the market due to a number of factors, including higher stampduty, a stronger pound and stricter government measures on non-dom status.
New rules for stamp duty were introduced at the end of last year, so people who buy homes worth more than937,000 now pay more in tax.
There has been a huge wave of foreign investment into the London property market over recent years fromcountries such as China and Russia, which has forced prices up in the capital.
The same pattern has been mirrored in prime central London locations with overseas buyers now accounting for32% of sales, down from 37% for the same period last year.
The report said that with overseas buyers looking elsewhere, the shortfall was being stemmed by domesticbuyers.
Sales activity amongst domestic buyers has surged ahead and there are currently 14 buyers for every availableproperty for sale in London, up from 10 at the end of 2014.
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 therock face of the new steeper stamp duty, and from overseas the strength of sterling, and governmentencroachments on nom-dom status make investing in the London property market seem 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. Were noticing longer purchase chains than ever as domestic buyers reallystart to dominate the market, and demand is really putting a strain on supply. This should ensure that Londonhouses prices and sales activity continue their ascent into 2