Acording to top UK estate agents, around half the number of prime properties they have sold in London have been bought by foreigners.
Savills reports that 55% of the properties valued £750,000 and higher that it sold this year were purchased by foreign buyers. It follows an announcement by another firm, Knight Frank, that 46% of the buyers of prime central London properties have been foreign.
Thanks to the falling value of the pound, Russian, Italian, French, Middle Eastern and other foreign buyers have been snapping up large London homes as investment. But while these big purchases may have helped keep London house prices from wobbling like those of the rest of the country, there is also the danger of the market being distorted by unrealistically high prices.
House prices in London have gone up 14% in the last year, higher than the national average of 8.5%.