Some 40% of properties valued above $15 million went to American buyers last year, research by UK Sotheby’s International Realty has revealed.
US buyers range from tech entrepreneurs to second home buyers, corporate executives, and young families.
They are particularly charmed by historic property in neighbourhoods like Notting Hill, Holland Park, St James’s, Belgravia, and Knightsbridge.
Camilla Dell, managing partner of buying agency Black Brick, said: “For many of our US clients, they see London as a safe haven compared to the US, where anyone can own a gun.
“There has also been an explosion of wealth in the tech sector in the US. When people get wealthy, they buy assets, and London is a key recipient of that.”
Some 20% of Black Brick’s luxury London buyers are from the US, mainly from the West Coast.
Reasons to leave the US include the gun crime, superior infrastructure in London, as well as the wealth in the tech sector.
Another factor is that although sterling has been strengthening, exchange rates remain appealing to dollar buyers.
Tom Kain, partner at Black Brick, said: “I have just worked with some American clients.
“They have got three young children, and they are considering living over here for a year just so that they can have the experience of living overseas and being in London. Americans really are a key client base.”
London on the up since the election
House hunters have taken heart from Labour’s resounding election victory, with property portal Rightmove reporting an immediate increase in interest from buyers and sellers in the mainstream market.
Prime Central London (PCL) also enjoyed a mini bounce, according to house price analyst LonRes, with transaction levels up almost 9% compared to last year, and the number of properties going under offer jumping by almost 24% year-on-year.
Price growth has yet to rise however, as they currently stand 5% down year-on-year.
It remains to be seen how the markets respond to October’s Budget, as Prime Minister Keit Starmer has braced Brits for short-term pain, likely to be in the form of tax hikes and cuts to services.
For foreign buyers the important factors are the dismantling of the Non Dom system, Capital Gains Tax, Stamp Duty surcharges for overseas buyers, and Inheritance Tax.
Dell added: “We are certainly busy – we had a record number of enquiries over the Bank Holiday weekend.
“But at the same time I do think there are definitely some clients who are waiting for the budget, so they can see exactly what the changes look like.”
