Overseas Buyers Buying Up London Property
Anyone looking to sell their home in London should always consider who the most likely buyer is. When you know who the most likely buyer is, and you present your home to their tastes and needs, you enhance the chances of connecting with buyers.
In London, there is still a considerable level of interest from overseas buyers, and this is likely to remain the case for the next few months at least.
Overseas buyers will face additional charges in 2021
At this time, overseas buyers benefit from the stamp duty holiday savings as domestic buyers. However, as of April 2021, there will be a 2% stamp duty surcharge for foreign buyers. Therefore, overseas investors who buy property now, as opposed to after April 2021, will make a considerable saving.
There has even been examples of some overseas investors bulk-buying London property, taking advantage of the benefits mentioned above, and a favourable currency conversion rate.
A lot of money is spent on London housing
An example provided by one agent states a Hong-Kong based buyer spent £7m on a six-unit purchase in London. By purchasing now, as opposed to concluding the deal after April 2021, the buyer saved £338,914 in duty fees and additional charges.
The same company stated that in the first nine months of 2020, buyers from Hong Kong purchased £305.6m worth of property in the capital. Not only have buyers been motivated by financial savings, there is an added incentive in that Hong Kong holders of a “British National (Overseas) passport” and their immediate family members, can apply for a special type of visa. This process begins at the end of January 2021, and it will assist people in claiming British citizenship.
However, according to another leading name in the UK property market, Hong Kong isn’t the area where most overseas property buyers hail from. The agency believes French buyers are snapping up homes in the English capital, buoyed by the performance of the Euro against the Pound.
The list of overseas buyers in the English capital is as follows:
1. France 11.0%
2. Hong Kong 9.2%
3. US 9.2%
4. Mainland China 8.3%
5. India 7.3%
6. Italy 5.5%
7. Switzerland 5.5%
8. Australia 4.6%
9. Bangladesh 3.2%
10. Japan 2.8%
Tom Bill, a head of UK residential research said; “Despite the background noise of Brexit, there is smart money in Europe targeting London. The combination of a weak pound, a looming stamp duty hike [for overseas buyers] and less competition from buyers who need to catch a long-haul flight has created a buying opportunity.”
North West London is popular with buyers
In reviewing where overseas buyers are purchasing property, there is enough backing to suggest overseas buyers are looking beyond the traditional prime property locations. With value for money a pressing concern, North West London is a growing market for overseas buyers looking for London property.
If you are interested in our lettings or property management services or you are looking to buy, sell, let or rent property in or around Willesden, call us on 020 8459 2530 and a member of our estate and letting agent team will be happy to help.