More British buyers ‘entering London property market’

More British buyers are purchasing 'super-prime' properties - worth £10 million or more - in London.

The tides have turned in London, with fewer foreign buyers looking to invest in ‘safe haven’ properties in the capital, while more of their British counterparts seeking to secure prime real estate, according to a report from Knight Frank.

For the first time this year, UK buyers have accounted for the majority of the market, with a share of 53 per cent, compared to 36 per cent in 2013 and 27 per cent in 2012, the research notes.  

In addition, the report said the combined figure for British and European buyers was 79 per cent in the first quarter of 2014, compared to 46 per cent in 2013. Knight Frank believes this is an indicator of how sustainable demand remains for ‘super prime’ property - homes worth over £10 million.

The review also reveals that annual prime growth across central London in the year to April slackened to 7.5 per cent. Annual growth for super-prime property was 3.3 per cent - a figure that Knight Frank claims is due to buyers seeking value beyond the popular postcodes in the capital, such as Mayfair and Belgravia.

It also appears that buyers are more willing to pay high prices for flats rather than houses, as the average price for a super-prime apartment is £3,460 per square foot compared to £2,545 for houses.

Richard Cutt, a member of the global estate agency’s prime central London team, commented: “There is no doubt the market is becoming more product led. Both overseas and UK buyers know what they want, whether it is a large lateral penthouse apartment or a substantial detached family house and are now prepared to look outside the golden postcodes to find a property that fits their criteria.”

According to the report, British buyers are occupying the empty places of foreign buyers as threats, such as the possible collapse of the Euro zone, lessen as the UK’s economy experiences as an upturn. This means there are more UK buyers in the super-prime bracket since the financial crisis of 2008.