The property press have reported many times recently that the UK is experiencing a huge influx of foreign nationals who are seeking to buy high end property. Whilst London gathers the most inquiries and sales, the trend is now spreading out to the Home Counties.
The Russians Come To Oxford
The Oxford press reported that last year nearly 40% of high end property over £2.5 m in the was bought by Russians and Europeans-notably Greeks. Agents in Oxford are experiencing a 40% uplift in inquiries from buyers in the Middle East.
The Telegraph reported that 19 out of 20 of Britain’s most expensive home sales last year were sold to foreigners, pushing out the former owners who were mostly English. At the very top end, 90% of buyers are international for sales of properties over £30 million.
Foreign Buyers Seek UK Holiday Homes
The majority of the homes bought are for holiday homes and will not be lived in permanently. The effect of this over the long term is the creation a two tier system and lot of bad feeling with the locals. Britain is moving back to a class system, with property ownership at the heart.
Much of the wealth that is arriving via the newcomers is money which has been derived from crime, often this can be laundered via offshore companies which are then used to buy UK high value property. Those companies are set up with the sole purpose of buying property anonymously. UK property tax laws are currently very favourable for this type of purchase.
Yolande Barnes, Savills director of research, said;
Five star new build developments built near hotels with concierge facilities etc are also on the increase. They are marketed and sold exclusively to foreign nationals who want to maintain their luxury lifestyle by having the same advantages as a hotel, but in a private apartment complex.