Foreign buyers are providing a major boost to the UK housing market as they swoop in to buy luxury homes outside of London. In 2017, 45% of all £5-million-plus country homes in the UK are being purchased by foreign nationals according to a report issued by Knight Frank.
This number has grown significantly since 2016 when only 28% of these sales were going to foreign nationals.This is a sign that the super prime market is exceeding expectations and can expect continued growth. It also shows a shift in the market since these super-prime home sales are significantly outpacing the growth in the total market.
- Despite recent market declines, the UK market is making a recovery across the board.
- The super prime market of country homes worth £5-million-plus has grown by 14% vs. 5% for the market in general.
- 45% of the purchases are being made by foreign nationals and not UK residents, highlighting the importance of foreign investment in this recovery.
International buyers are increasingly turning their attention to super-prime properties outside London, with 45% of all £5-million-plus (US$6.95 million) country homes in the U.K. being sold to foreign nationals in 2017, according to Knight Frank data released Tuesday.
The percentage of foreign buyers in this market was significantly up from the prior two years. In 2015 and 2016, foreign buyers accounted for 21% and 28%, respectively.
Buyers from the Asia Pacific made up 19% of super-prime country sales in 2017, up from the merely 5% in 2014. There was also a resurgence in Russian buyers, who had been relatively absent in the previous years but bought 14% of all super-prime country homes in the U.K. in 2017.
North Surrey, an area about a 45-minute drive from Central London, was the hottest hub for super-prime activity outside London, accounting for the largest percentage (40%) of super-prime country sales, according to Knight Frank.
Overall, the super-prime country market in 2017 performed better than expected, with the number of £5-million-plus sales increasing 7% year-over-year and raising the level back in line with longer-term trends, said Oliver Knight, a research associate at Knight Frank.
View the original article at Mansion Global