Russian buyers are back in the high end London residential market in force, according to the latest statistics.
Figures from Knight Frank prepared for Mansion Global claim that in 3Q 2018 one in five of all London property sales over £10m were to Russian buyers. This is up from just 6% in 3Q 2016 and compares to 4Q 2016 and 4Q 2017 when no Russian buyers bought in the super prime London market.
Katya Zenkovich, partner at Knight Frank, comments: “Technically it’s been the best year for me in the value of sales. We reached our sales target in six months.”
A number of reasons might explain the increased Russian interest in this market: Increased rates of stamp duty which impacted the market in 2015 and 2016 have now ‘bedded in’ and been offset by a rise in the value of the rouble. The UK market continues to be regarded as a safe haven for overseas money, while the softer London market also offers more scope for good deals.
Interestingly though, Russian buyers’ motivation doesn’t appear to be just financial. Many agents report that a significant number buy with a view to living, working or sending their children to school in London.