International buyers have been snapping up prime properties in London to take advantage of potential tax savings implemented by the government to support the housing market during the Covid-19 crisis. So far this year, foreign buyers have purchased 6,438 homes in London with an aggregate value of £3.321 billion (US$4.4 billion), which accounted for 41% of the total sales volume across the capital city of U.K., according to a report Tuesday by Astons, a leading provider of immigration and relocation services. Leading the pack were French nationals, who accounted for 11% of foreign buyers of prime London properties, with a combined spend of £365 million, according to the report.
The demand from foreign buyers was largely driven by tax savings, Mr. Sarkisian said. The current stamp duty holiday, in effect through March 31, 2021, lifts stamp duty taxes for properties under £500,000 and more expensive properties will only be taxed on their value above that threshold. Also, the government is expected to levy an additional 2% surcharge to non-U.K. buyers next April, according.
Homebuyers from Hong Kong and the U.S. tied on the second, each accounting for 9.2% of the prime property purchases and bringing in an estimated £305.5 million to the London market. Ranked in fourth and fifth place were buyers from China and India, respectively, according to the report. Chinese buyers have purchased nearly £276 million worth of properties, while Indian buyers have spent £242 million in London’s prime market in 2020, according to the report.
Article source: Mansion Global