Foreign buyers in London fall

Sarah Davidson

November 19, 2015

This was down quarter-on-quarter and is also down from 25% of all sales during the third quarter of 2014

Domestic buyers meanwhile have risen to a new level of prominence in the London property market.

During Q3 some 79% of property purchases were made by domestic UK buyers, up from 75% a year ago.

Sales activity from domestic buyers has surged forwards to fill the gap left by overseas buyers and investors who have been left more cautious by the strong sterling, stricter government measures on non-domicile status and heftier stamp duty for higher value purchases.

Peter Rollings, chief executive of Marsh & Parsons, said: “The London property market has had to grit its teeth and bear the brunt of some rather trying taxation changes in recent months.

“At the high-end buyers are at the rock face of the new steeper stamp duty, and from overseas the strength of sterling, and government encroachments on nom-dom status make investing in the London property market seem daunting.

“This has cast some shadows over the capital, but the millions of Londoners who live and work in the city have acclimatised much more quickly to the property taxation changes, and have risen up to fill the void left by overseas purchasers and investors.

“We’re noticing longer purchase chains than ever as domestic buyers really start to dominate the market, and demand is really putting a strain on supply. This should ensure that London houses prices and sales activity continue their ascent into 2016.”

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