The weak pound against the strong dollar has triggered an increase in enquiries and sales from wealthy foreign investors in the prime London market.
The weakening of the pound against the dollar has led to an increase in demand for prime London property from foreign investors.
Since the UK voted to leave the EU in the June 2016 referendum, the value of the pound has dropped by 18% against the dollar.
The strength of the dollar against the pound means that US dollar buyers can make significant savings when investing in areas of prime central London, such as Knightsbridge, Belgravia and Mayfair.
The average price of property has dropped over the last six months, and this has increased demand from overseas US dollar buyers for properties valued at £5 million or more in the capital.
According to the Beauchamp Estates’ 2017 Wealth Report, over the same period sales of prime property to American buyers rose by 3%, while property purchases from Middle East-based buyers rose by 10%.
The report states that Middle East buyers are generally spending around £5-6 million on a property in an area like Knightsbridge or Mayfair, and are benefiting from the weak UK currency.
Now wealthy overseas buyers are capitalising on the investment opportunities available in the capital, which shows that confidence in London's prime market remains intact.
However, the number of enquiries and sales involving domestic buyers has slowed in recent months, with potential buyers deterred by stamp duty increases and the general uncertainty surrounding Brexit.
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