U.S. Luxury Buyers Look to London
London’s Residential Real Estate Market is Experiencing a Downturn and U.S. Buyers are Taking Advantage
With increases to taxes and uncertainty surrounding Brexit, London’s residential real estate market has been in a downturn since 2014. Buyers in the U.S. are taking advantage and are now the second most prominent group of international buyers in London, accounting for 6% of purchases in central London for the first half of the year.
“The currency discount, when combined with the fall in capital values in the city—which in prime central London is more than 20% since peaking in 2014—mean American buyers can get as much as a 45% discount when compared to a few years ago.”
Since buyers are getting more value for their dollar, they’re spending more, too. On average, Americans are spending £7.3 million ($9.3 million USD) on luxury homes in London which is up from the average of £5 million over the past decade.
But those eyeing London should act now, experts say.
“Any time there's a flicker of certainty [around the political instability], the pound strengthens,” said Ms. Fatemi, director of London-based estate agency Rokstone. “Now we have a general election, we’re heading toward clarity, and you'll lose the discount.”
With the general election set for Dec. 12, buyers have got “a month left to maximize,” she said.