Overseas buyers snap up 13% of London’s new builds
Over one in 10 (13%) new build homes in London were bought by overseas investors between 2014 and 2016, according to the Centre for Housing Policy – and up to 17.9% in 2016.
It also found that overseas investors are more likely to hold property in the capital that is under-used. The research team used 2011 census data to extrapolate the likely use of the homes. It suggested that 10.2% of the new build homes were under occupied, though this rose to almost half (49.5%) in prime London.
Overseas owners are more likely to hold property that is under-used, 42.3% compared to 5.6% of UK owners. Properties over £1m had a higher vacancy rate (38.8%) and the rate was even greater for homes over £5m (63.8%).
Surge from South-East Asia
Three-fifths of overseas sales were to people or companies from four countries in south-east Asia: Hong Kong, Singapore, Malaysia and China.
Across all sales 67.3% were mortgaged, though overseas owners were less likely to have a mortgage (53.5%) than UK purchasers (69.4%).
Overall overseas owners bought higher value properties (average of £500,000) than UK-based buyers (average of £415,000).