Four in five London homes bought by Brits
Brits have become emboldened in the London property market, as overseas buyers have been put off by higher taxes, according to a new study by estate agent Marsh & Parsons.
Its latest London Property Monitor has revealed that four out of five homes in the capital were bought by Brits in the third quarter of this year, up from three-quarters a year ago. Just 21% of buyers came from overseas in recent months.
This stronger activity from domestic buyers has filled the gap left by overseas buyers and investors, who have been more cautious as a result of strong Sterling, stricter Government measures on non-domicile status, and heftier Stamp Duty for higher value purchases.
The study also noted that overall demand for Prime London homes has grown in the three months to September 2015, and the number of registered buyers has climbed 4%. Combined with a 5% drop in the supply of properties available on the market, buyer competition is building, with a massive 14 buyers for every available property for sale in London.
Peter Rollings, CEO of Marsh & Parsons, said: “The London property market has had to grit its teeth and 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 of Sterling, and Government encroachments 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 have acclimatised much more quickly to the property taxation changes, and have risen up to fill the void left by overseas purchasers and investors. This should ensure that London houses prices and sales activity continue their ascent into 2016.”