At a time when the weakened pound is making properties attractive to overseas buyers, Britain's luxury residential market will benefit from the coalition government's drive to expand the private sector, even though public sector cuts have made homebuyers more cautious, according to economists. Homeowners in prime central London districts, such as Knightsbridge and Chelsea, and prosperous parts of the Home Counties, are expected to gain from policies aimed at attracting overseas investment, boosting exports and encouraging business.
Government support for a weakened pound to help exports and attract international investment is helping the luxury housing market because some overseas money is going into property. According to estate agency Hamptons International, 70 per cent of homes sold in central London this year have been bought by foreigners.
Liam Bailey, head of residential research at Knight Frank, says the weakened pound makes British property relatively inexpensive for overseas buyers.
'The fact that the desire for a weak pound was an explicit ambition of the previous government and now the coalition certainly helps,' Bailey says. 'The currency markets are pushing the pound lower and keeping it at a low level, a major factor drawing in demand for London's market.'
Luxury homes for sale include The Lancasters in Bayswater. Developer Minerva and Northacre is turning a parade of 15 mid-19th-century houses into 77 apartments. The grade II-listed, stucco-fronted fa?ade of the building is retained. Most apartments face south over Hyde Park. Inside The Lancasters, original features, including high ceilings, ornate cornicing and fireplaces, will be retained. Half the apartments have been sold, some for in excess of GBP10 million (HK$124 million).
Located in the prestigious Knightsbridge is One Hyde Park: The Residences at Mandarin Oriental, which will be completed next month. Half the 86 apartments at the Candy & Candy development have been sold. These include London's most expensive apartment, a six-bedroom duplex penthouse bought by a Middle Eastern investor for Euro170 million (HK$1.8 billion) in August.
In the secondary market, Sandfords estate agents is marketing a seven-bedroom apartment at Cumberland Terrace, Regents Park, for GBP4.95 million. Designed by John Nash, the classical stucco building overlooks Regents Park, 80 hectares of formal parkland and grassy expanse in central London.