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Foreigner buyers snap up posh London homes

1st March 2011

The number of different types of wealthy foreigners buying top end homes in London has hit a record high, according to new research.

 

By Myra Butterworth,

A total of 61 nationalities bought property in the capital during the last 12 months, up from 46 the previous year, estate agents Knight Frank revealed, with the fastest growing nationalities being buyers from Spain and Uzbekistan.

Concerns about the Eurozone have helped to boost the number of Spanish buyers by 340 per cent, while the increase in wealth created from mining and commodities has pushed up demand among buyers from Uzbekistan by 320 per cent.

Knight Frank suggested prices of prime central London properties rose by 1 per cent this month, meaning they stand 8 per cent higher than a year ago.

During the past year, the proportion of properties valued above £2m reached 52 per cent, and has climbed to 64 per cent for those homes costing more than £5m.

Liam Bailey, head of residential research at Knight Frank, said: “Prices slipped in London during the summer and autumn last year, which fitted the wider narrative of a weakening UK economy and a weaker national housing market.

 “The reasons for this growth, and the divergence of this market from national trends, can be partially ascribed to low stock volumes, and a desire from buyers over recent months to buy and fix their borrowing costs at very low rates.”

But he added: “The most important factor driving price growth, has been growing demand for London property from international buyers.”

 

Source:  Telegraph 1/3/11