As the value of the pound wobbles against the euro ahead of the EU Referendum Eurozone buyers are claiming a £26,000 ‘discount’ on London property, analysis from estate agents Stirling Ackroyd shows.
Due to the shifting exchange rate London homes could be purchased for €596,900 in June 2016, down from €630,100 in November 2015 (a €33,200 reduction) .
Stirling Ackroyd anecdotally reported buyers flooding into the London market to take advantage of the falling value of the pound.
Andrew Bridges, managing director of Stirling Ackroyd, said: “European buyers are snapping up bargains across London. A declining exchange rate has meant London is becoming a more affordable global property hotspot – particularly for those paying in Euros.
“If Britain votes to leave the EU, Sterling is set to fall further so, ironically, London would become even more affordable – and therefore more attractive – to overseas buyers paying in Euros.
“While Eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London’s property scene.”
In the last quarter of 2015 25% of the London market saw an annual fall of 2.4%, with prices in Kensington High Street falling by 11.8% and Notting Hill by 10%.
Bridges added: “After the referendum chatter has calmed down the bright lights of London will be undimmed – whatever the result. London’s resilience is second to none.
“House prices may be cooling slightly in the face of geopolitical uncertainty – but this is offering bullish buyers opportunities.
“The luxury areas of London’s property market are feeling the acutest drops in house prices but these areas typically have a higher proportion of European buyers – meaning exchange rate discounts on property purchases are compensating for any further slowdown.
“Speculation about the aftermath of the result is rife, but London’s reputation as a valuable property investment hotspot remains undiminished.
“The capital is fully equipped to combat the consequences of either a Remain or a Brexit vote, and London will continue to attract an abundance of potential buyers and retain its global capital city status.
“A ballot paper may prove an unequal opponent to London’s property power.”