The decline in sterling and the London property market is tempting euro buyers – and their sights are set on homes in W4.
The property price drops have been an eye opener for foreign buyers and when combined with the decline of sterling over the past few months, the bargains to be had are quite unbelievable.
Taking the exchange rates into account, properties are now worth between 40 and 50 per cent less than they were this time last year. Residential property – particularly in London - now looks cheap by international standards.
By way of example, Chiswick estate agent Oliver Finn has a house for sale in Bath Road, Chiswick, W4, a top London address, for sale at £1.25m. Last year, the asking price for such a property would have been £1.5m. With some nifty negotiation, it could now be bought for £1.1m – a £400k saving. And this doesn’t even include the amount saved against a strong euro.
More overseas buyers in West London properties
Christian Harper has fifteen years experience in the London property market and has noticed a marked increase in interest from overseas buyers. “We’ve had enquiries from European buyers exploring the possibilities of West London which have come to us via our extensive links to all the major UK property portals.”
According to research by Savills’ analyst Lucian Cook, there has been a 70 per cent rise in international enquiries since the Bank of England started to slash interest rates in November.
But it’s not just the euro-rich who are buying property in London, the buying agent Property Vision noted in a report published last month that interest from dollar buyers has increased significantly, as their money now goes at least 25% further than it did six months ago. A few wealthy Chinese bargain hunters have also been sighted.
