Dropping London prime property prices are attracting overseas buyers

Last week we wrote about the prime London property prices dropping like a brick, with prices now 18% lower than the peak in mid 2015, however amid the political turmoil, Brexit, higher taxes, the stock market, trumps tariffs, the very things that have worried London's millionaires to up sticks and move out, have also given overseas investors a perfect opening into the UK. Knight Frank, recently released analysis showing that Trumps trade policies, along with weakening the UK economy, could help to boost the property market.

US, and other overseas buyers, especially those wanting to exit American, are seeing the falling prices in the UK capital as an opportunity, and with the weakened pound against the dollar, London prime properties are now seen as good value, prompting a rush of buyers into this space.

Partner at Black Brick, Tom Kain, said: “The flip side of London’s stagnant prices, coupled with the weakness of the GBP versus the USD, is that to overseas buyers the British capital feels like surprisingly good value. This is driving a rush of buyers from the USA and the Middle East, where currencies tend to be pegged to the dollar.

“London is the natural place for people from the USA to buy because of the shared language, and they just feel at home here.”

This influx of new investment into London is also being fuelled by the dropping mortgage rates, seen since President Trump announced his tariffs. Proving once again that the UK property market is one of the most robust across the globe, with international investors considering the UK now as a safe haven compared to other countries, with figures released by HMRC showing that 42% of overseas buyers found it a safe investment.