Drop in pound results in cheaper UK property for foreign property investors
London Mayor Sadiq Khan this week criticised his predecessor Boris Johnson for his “embarrassing” failure to stop overseas investors buying London homes – but now the capital is set to become even more attractive to international buyers.
Mr Khan described prominent Leave campaigner Johnson’s Concordat as “toothless”. The agreement, which the then London Mayor made with 50 property developers, was designed to stop them advertising London homes abroad months before they went on the market over here.
But following yesterday’s referendum, property values in London’s emerging prime areas are 20 per cent cheaper in US dollar terms, according to a report released today by Douglas & Gordon, making them “increasingly attractive” and potentially undermining Mr Khan’s own bid to reduce the number of London properties being sold to overseas investors.
Britain’s decision to opt for Brexit will create bargain opportunities for foreign property investors over the next three months in some of the most expensive areas of London such as Fulham, West Putney and Clapham, according to the report.
The value of sterling plummeted to its lowest level for 31 years this morning, which means that at $1.39 to the pound, houses in some of the most desirable parts of London are a fifth cheaper for anyone buying with US dollars.