Investors from all over the globe have taken advantage of the drop in the Sterling due to the Brexit issue to buy luxury homes. The HM Revenue and Customs reported that more than 300 homes worth more than £10m each were sold last April 2017. This signifies a 200 increase from 100 homes sold during the year before that.
This was due to the pound decreasing in value by a whopping 13% against the Dollar ever since the Brexit issue started in June 2016. According to Jonathan Samuels of Octane Capital, wealthy cities in the UK became a hub for foreign investors because of cheaper rates due to the drop in the GBP. The ultra-wealthy investors see this as the time to buy assets at very low rates and wait for them to appreciate once things settle down. In fact, Samuel also states that the sharp decline of the GPB was able to compensate the stamp duty surcharge of 3% of homes due to the drop in prices. This further allowed the rich investors to save money on their purchase.
A specialist in luxury homes Henry Pryor also believes that this political turmoil became a hunting ground for the rich investors.
Pryor believes that drops in prices like these are what keep the ultra-wealthy rich. It’s because they have the resources to spend and know where to spend it. In the midst of political unrest, they have the funds to invest in assets that have bargain prices, allowing them to reap the fruits of their patience in the future.
Some of the most expensive purchases that were made include a £60m mansion on Belgrave Square, a £100m real estate property which belonged to the former Duke of Devonshire William Cavendish, and a seven-bedroom unit on Primrose Hill.