According to detailed analysis of international purchase activity in the city by Knight Frank, between June 2012 and June 2013 only 28% of all £1m+ sales in prime central London were to buyers residing outside of the UK.
This analysis has been focused specifically on those residing outside of the UK, as opposed to non-UK nationals, as with a city as diverse as London ( 38% of inner London residents were classified as foreign born in the 2011 census) a foreign demand analysis would not be accurate.
A sample of 3,500 property titles in all 33 Greater London boroughs for new-build property purchased between June 2011 and June 2013 with sales prices ranging from £200k to £5m were reviewed to understand the scale of international purchases across Greater London.
The Land Registry was used to work out the residence of ownership and where “non-natural” owners were recorded a view was taken to consider these as international purchasers, with the exception of registered social landlords, or other obviously UK based entities.
The research conducted by Knight Frank reveals that 51% of new-build purchases in the prime central London market were to UK residents over between June 2011 and June 2013. This rises to 80% across the remainder of inner London .
On the other hand, outside of London, comprising the remaining 19 boroughs, it was found that more than 93% of sales were to UK residents.
For more information see The Knight Frank Global Briefing