British buyers are squeezing foreign investors out of the market of elite real estate of London

British buyers are becoming more active on the national market of elite residential real estate. Especially noticeable redistribution of the market in favor of local buyers in the upper sector of the market of elite housing. Since the beginning of 2014, the citizens of great Britain has made more than two-thirds of all purchases of residential property in the price range of more expensive than £5 million when compared with the same period last year, the share of local buyers were not more than half.

The vast majority of Britons carry out transactions on the market and super elite suburban real estate in the UK, approximately 71% of all purchases in this sector was made by the British. For comparison, in 2013 the proportion of UK citizens in this sector was 46% .

The main reason for the increased interest of British buyers to the local real estate market improving UK economy coupled with the growing confidence in the property market.

In addition, the stock market actively there are processes of absorption and merging and some of the players in the stock market of the United Kingdom prefer dividends to invest in assets on the residential property market, rather than expose dubious business risks.

It should be noted that it is often British buyers have to compete for a particular object with foreign investors to give a higher price for the property. Grown considerably over the past year the pound against other currencies is a good helper in this.

Being at its minimum in 2009, super-expensive luxury real estate in England has risen by 2014 by 12%, and in London the rise in prices for elite real estate amounted to during the same period 70%.

In addition, increased growth of demand for real estate luxury from the British buyers, significantly increased demand from Asian investors and buyers. In 2014, 6% more purchases in this sector have made Chinese buyers.

The economic situation in the UK is now stable and favorable real estate market, meanwhile, the political situation contains elements of unpredictability. There is uncertainty as to the tax sphere of real estate, which will certainly exert its inhibitory effect both on the demand in this sector and the dynamics of prices.

® Alice Morgan. 08.10.2014

BROMPTON ROAD, KNIGHTSBRIDGE SW3 – £ 5,950,000

HENRY MOORE COURT, MANRESA ROAD, SW3 £ 12,000,000

KENSINGTON SQUARE, KENSINGTON W8 – £ 7,000,000

KNIGHTSBRIDGE SW1X – £19.5 million

MONTPELIER SQUARE, KNIGHTSBRIDGE SW7 – £13.3 million

PARKSIDE, 28-56 KNIGHTSBRIDGE SW1X – £ 6,995,000

QUEENSBERRY PLACE – £ 12.5 million

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000

TREVOR STREET, KNIGHTSBRIDGE SW7 £ 7,950,000

Mansion on Mayfair £ 32,999,950

Luxury apartment – Hyde Park – £65 million