London Property Now £26,000 Cheaper for Euro Buyers

Eurozone buyers are flooding the London property market, as prices drop by £26,000 ahead of the EU referendum, according to the latest analysis from estate agent Stirling Ackroyd.

The depreciation in sterling seen in June means that the average house price in London is now just €596,900 for euro buyers, compared to a record high of €630,100 in November 2015. Therefore, property in the capital is now €33,100, or £26,000, cheaper for these buyers.

The €33,200 saving equates to a 5.3% drop in London property prices.

The Managing Director of Stirling Ackroyd, Andrew Bridges, comments on the findings: “European buyers are snapping up bargains across London. A declining exchange rate has meant London is becoming a more affordable global property hotspot, particularly for those paying euros.

“If Britain votes to leave the EU, sterling is set to fall further, so, ironically, London would become even more affordable – and therefore more attractive – to overseas buyers paying in euros. While Eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London’s property scene.”

Although London house prices are still historically high, the luxury end of the market is experiencing a slowdown.

Stirling Ackroyd found that the top 25% of London’s property market experienced an annual fall in prices of 2.4% during the last quarter of 2015, compared with 8.2% annual growth in the majority of the capital’s neighbourhoods.

The capital’s most exclusive districts, such as the West End, are being hit particularly hard by the forthcoming EU referendum.

Kensington High Street (W8) saw the greatest annual decline in house prices over the last quarter of 2015, at 11.8%. This was followed by a 10% fall in Notting Hill (W11).

Bridges continues: “After the referendum chatter has calmed down, the bright lights of London will be undimmed – whatever the result. London’s resilience is second to none.

“House prices may be cooling slightly in the face of geographical uncertainty, but this is offering bullish buyers opportunities. The luxury areas of London’s property market are feeling the acutest drops in house prices, but these areas typically have a higher proportion of European buyers – meaning exchange rate discounts on property purchases are compensating for any further slowdown.”

He concludes: “Speculation about the aftermath of the result is rife, but London’s reputation as a valuable property investment hotspot remains undiminished. The capital is fully equipped to combat the consequences of either a remain or a Brexit vote, and London will continue to attract an abundance of potential buyers and retain its global capital city status. A ballot paper may prove an unequal opponent to London’s property power.”