Luxury properties in London are on the rise and cash buyers are dominating London sales as rising interest rates have caused borrowers’ purchasing power to fall. It’s the photo of Savills, one of the leading real estate agents in the world. Let’s take a look at the development of the real estate market in the British capital.
Photo by Miroslav Cik – Shutterstock
TO London, more than 70% of the “primary” properties you were obtain all in Cash between January and May 2023, according to the report Savill’s real estate agent. That’s up 11 points from the same period last year and there is also a 35% increase in cash transactions of high-quality properties on the outskirts of the UK capital.
In June is the Bank of England has raise the base rate down 0.5 percentage point, the highest level in 13 years, and mortgage rates are now at their highest level in 15 years. Because of these increases, the big home loan they’re getting more and more inaccessible And those who have the financial means to buy real estate with cash are more likely to do so. this includes fewer borrowers And more cash buyers on the market.
Luxury real estate in London, cash reigns supreme
Photo by Miroslav Cik – Shutterstock
The director the search for an apartment Savills, Frances McDonald he declared:
As core London continues to perform better-than-expected, recent rate hikes are likely to weigh on buyers’ budgets and heighten price sensitivity, particularly in off-premises and prime locations where more buyers rely on credit. Sellers must set prices pragmatically to align with prevailing buyer expectations.
THE Prices in the main markets of London I am down 1% Compared to the same period of 2022, there was a decrease of 3.5% of the prices of the Houses In the Great Britain In general.
According to Savills, this phenomenon is due to “a growing divergence between solvent buyers and stocks and other groups in their ability to transact, and between the high end of the market and the lower value segments.”
London Prime Market prices of over £5m remain flat (-0.1%), while the £500k-£1m market saw some declines (-2.1%) and the under £500k market £ continued to fall (-2.5%). .
Returning international buyers
According to real estate agent Hamptons, 39% of prime property in London has been bought by international buyers and the proportion of houses bought by foreign buyers averaged 48% between 2015 and 2019. Americans dominate as they bought a large number of properties in the UK in 2022.
Europeans remain the largest group of international buyers, accounting for 12% of London’s top sales. However, European buyers fell for the third straight year, down 17% from 2019.
Luxury houses in London, pictures and photos
