There has been a sharp rise in the number of people from the within the eurozone acquiring property in London in recent months thanks largely to a beneficial exchange rate that is effectively giving eurozone purchasers buying property in London greater purchasing power, according to new analysis.
The research, conducted by Stirling Ackroyd states that residential property prices in London have fallen by an average of €33,200 (£25,500) for eurozone buyers over the past seven months thanks to the strengthening euro against the pound.
According to the London estate agents, the depreciation in sterling in June means the average price of a home in London now equates to €596,900, compared to a record high of €630,100 in November 2015 – a €33,200 saving that amounts to a 5.3% discount within London’s residential market.
Andrew Bridges, managing director of Stirling Ackroyd, commented: “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 in 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.”