The latest property market analysis by London lettings and estate agent, Benham and Reeves has revealed where foreign buyer demand and ownership has been keeping the London property market afloat, during an otherwise muted pandemic period when the capital largely trailed the rest of the UK where domestic market activity is concerned.
Benham and Reeves analysed data on titles from the Land Registry registered to overseas buyers on London properties and how this level of foreign home ownership has changed, as well as the total estimated market value of foreign property purchases within the capital.
The analysis shows that there has been a 4% annual increase in the total number of London homes registered to overseas buyers, totalling 85,451 in 2021 versus 81,872 in 2020.
Hackney has seen the biggest increase in foreign property ownership, with a 15% increase in registrations to overseas individuals , followed by Greenwich (+10%), Lambeth (+8%) and Tower Hamlets (+8%).
Benham and Reeves then applied property market values over both timeframes to find the total worth of internationally registered homes, with the research estimating their total worth amounted to £59.3bn in 2021 – a £6bn increase on the initial pandemic year of 2020.
In terms of the highest sums of London property owned by foreign individuals, Westminster ranks top with an estimated £12.5bn in value in 2021, followed by Kensington and Chelsea (£9.7bn) and Camden/Tower Hamlets (£3.4bn).
Westminster has also seen the largest annual increase, with properties registered to foreign addresses accounting for £2bn more in value in 2021 versus 2020, with Camden again ranking high (+£565m), this time followed by Hammersmith and Fulham (+£556m).
In fact, just one borough has seen a drop in foreign activity and that’s Haringey, where overseas registrations dropped by -1% year on year, while the total value of these properties also fell by -£5m.
Director of Benham and Reeves, Marc von Grundherr, commented:
“The spread of Covid-19 and the ongoing travel restrictions that were imposed understandably impacted the ability of foreign buyers to transact across the London market for the duration of 2020 and part of 2021.
This undoubtedly contributed to a sluggish London performance when compared to the pandemic property market boom that took place elsewhere across the UK, but there’s also no denying that foreign demand has started to return to all corners of the capital and at some pace.
Not only are transactions climbing, but the values being paid have also increased considerably, particularly across the prime London market, and this is a sure sign that the London market is on the up.
Of course, there will be one segment of the international buyers that are sure to be absent for the immediate future, at least. However, what we’re sure to see is yet further proof that London is the destination of choice for global buyers of all shapes and sizes, not just those from a few select locations.”
Table shows the number of residential property transactions registered to individuals with an overseas address, the average house price, estimated total market value and annual change of these transactions
District
Overseas registered property (2021)
Average house price
Total estimated value
Annual Change in registered ownership
Annual Change in total value
CITY OF WESTMINSTER
12,104
£1,031,431
£12,484,446,440
4%
£2,019,967,624
CAMDEN
3,666
£915,362
£3,355,716,871
3%
£564,997,794
HAMMERSMITH AND FULHAM
3,533
£825,487
£2,916,445,501
7%
£556,474,960
ISLINGTON
2,618
£764,286
£2,000,901,177
6%
£367,183,054
KENSINGTON AND CHELSEA
7,073
£1,374,008
£9,718,359,829
1%
£326,790,926
WANDSWORTH
5,110
£626,064
£3,199,186,907
4%
£226,600,934
BARNET
2,579
£578,382
£1,491,646,632
5%
£194,182,986
LAMBETH
3,483
£547,370
£1,906,490,497
8%
£182,626,042
RICHMOND UPON THAMES
1,232
£771,661
£950,686,736
7%
£160,593,426
HACKNEY
2,494
£572,278
£1,427,262,404
15%
£158,996,104
BROMLEY
2,915
£484,466
£1,412,217,149
5%
£149,419,951
CITY OF LONDON
1,378
£863,880
£1,190,426,965
5%
£141,093,104
NEWHAM
3,045
£399,569
£1,216,688,387
5%
£112,636,795
GREENWICH
2,022
£420,364
£849,976,815
10%
£110,002,322
SOUTHWARK
3,796
£553,470
£2,100,973,141
2%
£86,636,880
EALING
1,754
£518,623
£909,664,488
5%
£83,948,381
TOWER HAMLETS
7,547
£442,028
£3,335,987,101
8%
£76,557,720
LEWISHAM
1,672
£453,295
£757,909,633
6%
£70,261,445
BRENT
1,601
£518,129
£829,525,133
4%
£61,308,278
KINGSTON UPON THAMES
831
£537,977
£447,058,490
7%
£60,798,225
HOUNSLOW
4,923
£437,179
£2,152,232,697
1%
£58,911,945
HARROW
1,003
£517,508
£519,060,982
2%
£54,636,125
MERTON
1,018
£580,896
£591,352,454
3%
£42,558,613
HAVERING
1,724
£396,397
£683,388,338
1%
£37,116,768
REDBRIDGE
588
£479,896
£282,178,666
5%
£35,259,085
HILLINGDON
990
£436,916
£432,546,836
5%
£30,871,295
CROYDON
1,228
£406,896
£499,667,752
0%
£30,731,002
SUTTON
763
£422,075
£322,043,347
2%
£27,850,162
BEXLEY
299
£390,342
£116,712,368
3%
£14,825,266
WALTHAM FOREST
570
£484,621
£276,234,065
3%
£14,687,494
ENFIELD
620
£431,074
£267,265,757
0%
£12,526,307
BARKING AND DAGENHAM
311
£331,894
£103,219,045
1%
£7,967,899
HARINGEY
961
£585,338
£562,509,789
-1%
-£4,905,616
LONDON
85,451
£521,146
£59,309,982,390
4%
£6,074,113,296
Data on overseas registered property sourced from the Land Registry via the Centre for Public Data.
Average property values sourced from the Gov.uk – UK House Price index
Total estimated value based on number registered multiplied by the average property value.
Year on year change based on the difference versus the same data points on an annual basis.
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About the Author
Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 19 prominently located branches and 11 international offices.