EU Nationals Taking Advantage of Weak Pound in London’s Property Market Amidst Brexit Countdown

EU Nationals are reaching over The Channel and the North Sea to snap up London property. As the pound remains weak, the capital’s real estate is more likely to be bought by mainland Europeans looking for a deal – rather than billionaires and investors from further afield getting their hands on a trophy property.

It appears that foreign property buyers have ceased their interest in buy-to-let real estate due to the enforcement of a less appealing tax regime.

Figures from Hamptons International suggest that the keys to London homes are now more likely to land in European possession than in those of other foreign nationalities. In fact, their data indicates a three-percent rise in European purchases.

Pastor Real Estate’s leader of sales, David Lee, also sides with these figures by noting a rise in European investment in the London housing market.

He continues to suggest Europeans have acquired London property to use for a number of reasons. Uses include holiday homes, family homes and even accommodation for their children who study in the English capital.

However, London property investment for the purpose of housing children while at university is not exclusive to European buyers. Lee O’Neil of Knight Frank has also pointed to Chinese and Middle Eastern buyers doing the same.

Despite Brexit, many Middle Eastern property buyers remain loyal to London’s housing market and do not see the current uncertainty a reason to find bricks and mortar elsewhere, says The Collection’s founder, Caroline Takla.

Another group of people finding London property even more lucrative are American buyers. One of Prime Purchase’s directors, Guy Meacock, notes an increase in transatlantic buyers.

He has suggested that American abandonment of London property has reversed with many Americans taking advantage of the weaker pound and a desire to leave their own political situation. He carried on to remind us that London’s prices have significantly fallen, which adds to their allure.