Pound slump means elite London neighbourhoods are at huge discount to overseas buyers

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Knight Frank study predicts prime central London market will outperform the rest of the UK

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London’s most desirable addresses are about 50 percent cheaper in dollar terms, according to new research out today, which was at its peak in 2014.

The pound’s weakness against the greenback in recent years has meant that extremely expensive areas such as Knightsbridge, Chelsea and Notting Hill are seen as “good value” by wealthy foreign investors.

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Prices in “super prime” areas hit a high eight years ago, before Chancellor George Osborne slapped far higher stamp duty rates on high-value properties.

Threats from a Jeremy Corbyn-led government and prolonged political turmoil over Brexit also suppressed prices, which are down around 13% in 2014 across prime central London.

An analysis by agents Knight Frank showed that buying a £5 million property in Knightsbridge in July 2014 would cost $8.583, when the pound was worth $1.71.

Since then the price is down about 24% while the pound is down to $1.14 today. This means that the same property can now be purchased for $4.371 million, an effective discount of over 49%. Chelsea, Notting Hill and Bayswater have similar discounts. Fulham and Kensington also have over 40% off.

According to Knight Frank it is dangerous that US buyers and countries where currencies are pegged to the dollar such as Hong Kong and some in the Middle East may “buy” in London with enormous spending power.

Knight Frank concluded: “The increase in prices in prime central London over the next five years is due to the relative price dfcount and repetition of international travel as reasons to outperform other areas of the UK.”

Credit: www.standard.co.uk /

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