01 October 2013

Offshore Investment (October 2013) : London Homes for the World’s Elite - at what cost?

The UK's property market is a curious thing - whilst property prices in most parts have been more or less stagnant over the last few years, the prime and super-prime markets in London have been storming ahead.  Of course, for most ultra-high-net-worth individuals, particularly foreigners, London is the UK and they would not consider buying property anywhere else. 

It is also interesting to see where the buyers are coming from. Only one third of super-prime properties are acquired by UK nationals - the rest is acquired by foreigners. Russians and those from the CIS lead the pack at 18.6%, with the Middle East at 15.4%, Asia Pacific at 9.9% and the balance being Europe, North America and so on.  Since so many buyers are foreigners the issue of tax is an important one. 

London may be seen as a safe haven - both politically and economically – but buyers are not blind to the costs of acquiring property there and will take into account exchange rates, taxes and other costs before deciding to buy.

James Quarmby examines the various costs of acquiring, holding and disposing of properties for both UK and non-UK based buyers.

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