International sales in London still lag pre-Covid levels

International buyers purchased 39% of homes sold in prime central London (PCL) in 2022, according to the latest briefing from Hamptons.

The figure represents a rise on 2021’s low of 35%. However, foreign interest remains down on pre-Covid levels, when the share of homes bought by international buyers averaged 48% between 2015 and 2019.

The biggest shift in 2022 came from American buyers, who bought 7% of homes sold in PCL in 2022 – more than triple the share recorded in 2021 (2%). This was predominantly driven by the strength of the US dollar, said Hamptons, pointing out that currency changes meant a property costing £1m in 2021 would effectively cost a US buyer £900k in 2022, equating to a 10% saving.

Hong Kong buyers also increased their share, from 2% in 2021 up to 4% in 2022. Given their currency is pegged to the dollar, they too have benefited from currency savings, said Hamptons.

However, Middle Eastern and European buyers remain scarce compared to the pre-Covid period. European nationals made up 12% of PCL buyers in 2022, 5% fewer than in 2019. Even so, they remained the biggest international buyer group. Middle Easterners bought 7% of homes in 2022, down from 10% in 2019.

In Greater London, domestic demand continues to dominate sales, meaning the share of homes bought by international buyers remained flat at 23% in 2022 – the third joint lowest share on record.

While remaining the biggest international buyer group, EU buyers in Greater London fell for the third consecutive year; they made up 9% of buyers in 2022, down from 10% in 2021 and 13% in 2019. The last time this proportion was so low was in 2017, the year after the EU referendum.

Middle Eastern buyers in Greater London also dropped a percentage, purchasing 2% of homes. Two groups filled the gap, each growing a percentage point, with Hong Kong purchasers accounting for 3% of purchases and Americans 2%.

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