Millionaire home buyers buying property in London are responsible for continuing strength in high end house prices in London. Despite recent interest rises the luxury home market is not showing signs of slowing. It seems the rich may be immune to such attempts to dampen the market and it appears that two of the UKs largest property consultancies Savills and Knight Frank agree.
Savills is one of the UKs leading international property advisors and has over 160 offices and associates world-wide. Chief Executive Aubrey Adams said the super prime residential market – houses costing £5m or more in London and large country houses – was continuing to benefit from City bonuses but were also “heavily influenced” by international buyers who accounted for about half of purchases.
Knight Frank which has its head quarters in the UK and is also global property consultancy with offices in 36 countries. “We expect to see price growth in prime central London settle at 25 per cent by the year end,” said Liam Bailey, head of residential research at Knight Frank.
Britain is home to about 68 billionaires, according to April’s annual survey published by the Sunday Times. Many newcomers are overseas investors from emerging economies like China, India and Russia. London is home to residents such as Norwegian shipping magnate John Fredriksen and Vladimir Kim, chairman of Kazakhstan’s biggest copper producer.
The latest Financial Times House Price Index, updated with the most recent monthly data from the Land Registry, shows that UK house prices rose by 0.7% in June and by 9.0% over the past 12 months.
