Press Release: Wealthy Europeans snap up London homes as sterling flounders
Mon 22 Dec 2008
Euro-buyers are taking advantage of sterlings weakness to snap up luxury homes in Londons nicest boroughs, according to London estate agent, Marsh & Parsons.
European buyers are piling into central London as Euro prices drop. In December 2007, the average completion price for a property in Kensington & Chelsea was approximately 840,000. In sterling terms, Marsh & Parsons say prices have fallen 24% over the past year. %. But the story looks very different from the continent thanks to the plummeting value of the Pound against the Euro. In Euro terms, prices have plummeted from 1,162,720 to 676,032 a fall of 42%.
Managing director of Marsh & Parsons, Peter Rollings, said, European buyers especially Italians - are piling in to Londons property market and supporting prices locally. As far as theyre concerned, theres never been a better time to buy theyre snapping up the bargains. While the British economy is faltering, the Euro is getting stronger and this is the result. This week weve seen two Italian couples competing over a 700,000 property in Battersea.
The pound has now fallen approximately 15 cents against the Euro in three weeks since the Bank of England slashed the interest rate to 2% in an attempt to prevent a deep recession. Investors are choosing to shun the Pound as the UK interest rate is below that in the Eurozone and could yet fall to near zero. Short sellers are also betting on sterling continuing to fall.
Peter Rollings said, Sterling has plummeted against the Euro - hitting a new low in early trading on the 18th. One pound is now buying you less than one Euro after commission. Six months ago, Europeans were a lot less active in the market. Now half of all the top end sales are going to Europeans thanks to the weak pound.
Exchange rates from http://www.x-rates.com
For further information please contact:
The Wriglesworth Consultancy
James Staunton / Sarah Davidson
0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a
'can-do' attitude covering all aspects of residential property. They
aim to establish individual relationships with clients through a
business built on energy, agility, professionalism and knowledge. Their
business aim is to be the agent who not only understands the local area
around their offices better than any other agent, but also to be at the
heart of the community.