Sales of luxury homes worth over £10 million have tripled since the Brexit vote, as foreign buyers take advantage of the weakened pound. HM Revenue and Customs data shows 300 such properties were sold in the tax year to April 2017, up from 100 the previous year.
Jonathan Samuels, CEO of Octane Capital, said the 13% drop in sterling against the dollar since the June 2016 referendum has turned the UK into 'a goldmine for foreign investors seeking a bargain'. He noted that while the mainstream market saw transactions fall, the ultra-wealthy cashed in on rapidly softening prices.
The stamp duty surcharge on second homes, introduced in 2016, has been more than compensated for by the currency decline, according to Samuels. Stamp duty on properties over £1.5 million is 12%, rising to 15% for second homes, generating £7.3 billion in 2016-2017, with £3.4 billion from London alone.
Recent high-end sales include a Grade I-listed mansion on Belgrave Square for £60 million, a seven-bedroom property in Primrose Hill for £17.4 million, and a six-bedroom townhouse in Chelsea for £13.7 million. Outside London, a nine-bedroom mansion near Ascot sold for £15 million, and a seven-bedroom Oxford property for £10.5 million.
However, luxury buying agent Henry Pryor warned that the ultra-prime market has become fragile as buyers await the final Brexit deal, demanding significant discounts. 'Wealthy people are usually rich because they are careful with their money,' he said, noting that demand remains but buyers want confidence they are not overpaying.
