Luxury Homes Sale Increase Over Reduction in Pound Rate By 13%

Luxury Homes for Sale UK

London is still attractive in terms of real estate buying and investments in luxury homes. As per the figures released by HM Revenue and Customs data, in the tax year, April 2017, at least 300 homes were sold for more than £10m each, indicating an increase by 100 homes compared to the 12 months before. 

The decline in the pound by 13 per cent against the dollar since June 2016 offers excellent opportunities to grab a deal in a favourite location. 

The report by Knight Frank reveals 12.5 per cent of the growth in new property buyers could be seen in Q3 in 2018 as compared to Q3 2017; London home prices and the markets had grown by 31 per cent in new buyers in prime central and prime outer London property in the year as compared to 2016. 

Super Rich Seeking Prime Properties

Global high net worth investors are seeking to benefit from the decline in the value of prime property in London. In contrast, the decline in sterling value provides options to get luxury homes in the range of £10m-plus at a lower cost before the completion of the referendum. As a result, many ultra-rich high net worth buyers are cashing on rapidly before the currency price regains. 

Currently, there are several factors affecting the real estate markets, such as growth in population that continue to raise demand; at the same time, there exists a lack of stock, while the support from the government in the form of availability of credit, long-term mortgage options, and Help-to-Buy schemes may deter fall in rates. 

• The referendum, the two general elections and several local and international factors affect the market. 

• At the time of economic and political volatility, in the UK, the US and some European countries, several sellers could not get local buyers, whereas high net worth individuals & institutions from overseas sought such opportunities to get a bargain to invest or relocate. 

• The stamp duty on property above 1.5 million is currently at 12 per cent for the first home and 15 per cent for the second home. 

• Treasury statistics claim a rise in stamp duties by 21 per cent in 2018 (over last year) on second-home sales. 

• Many high-net-worth individuals were waiting for the decline in price offered during the fallout from Brexit and are now grabbing the desired deals more than ever in the capital city.  

A recent report by Knight Frank - St John's Wood in central London continues to attract investments as the prices are low compared to Chelsea, Mayfair, Belgravia, and Kensington.  

The property sector in London witnessed many delays over the referendum. However, dealings in the mid-section real estate European residential markets are expected to grow in the post-Brexit phase. There are speculations that political instability and economic weakness can help buyers make a quick decision in such markets if the deal goes bad.  

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).