Luxury London living costs set to rise 8%

Luxury London living costs set to rise 8%


A leading real estate agent has changed its predictions for the UK housing market and now expects the cost of Central London prime homes to rise by eight per cent by the end of this year.

Savills plc's predictions may in part be due to a recent increase in international buyers, who are taking advantage of the weak pound.

Andrew Ellinas, Director of Sandfords, said: “A flurry of international buyers is sustaining prices in prime areas of London, with 60% of all properties being snapped up using foreign funds. Greek buyers have now joined those from the Middle East, Russia and China as one of the principle buying forces, increasing by 25 per cent since the start of the year as investors look to sure up their wealth. Renewed turbulence in the eurozone and the strength of the capital’s property market means London will continue to be viewed as a safe long term investment for foreign buyers with competition for the very best properties continuing to push up prices.”

Lucian Cook, a researcher for Savills, added: “Overseas demand has been much stronger that we expected. The big unknown is what happens in Greece-will it be a catalyst for more demand because of the outlook in the euro region?”

It seems though that economic trends such as the falling value of the pound and the fragile state of housing prices in other parts of the UK, have done little to deter the allure of property in central London.

Overseas buyers accounted for 72 per cent of the sales of prime London property in the first quarter, up from 60 per cent three years earlier.


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