International buyers remain important in the prime London market, which makes it more susceptible to exchange rates. These have been favourable for buyers holding their wealth in US dollars, as the weak pound has combined with limited price growth to offer relative value.
For example, a property in prime central London valued at £10m in late 2014 would have cost the equivalent of $15.8m at the time. As the UK economy stabilises and strengthens, you might expect prime London property to become more attractive to overseas buyers. The issue is that a stronger economy may lead to the currency strengthening, reducing the dollar ‘discount.’
UK interest rates remain a factor for our mortgaged buyers, but recent reductions are a positive sign that we are heading in the right direction. Cash purchases by parents of homes for their adult children continue, and those seeking an investment for the future are keen to tie up deals before Christmas.
