There’s truth in the old saying that with challenge comes opportunity and it’s certainly the case for buyers with a keen eye on London’s most expensive housing stock.

Inevitably the UK’s continuing political and economic uncertainty is breeding caution, but the fall in the value of sterling also raises the prospect of significant savings for purchasers with foreign currency.

In September 2019, the price of £5m+ property in the heart of the capital had fallen around -20 per cent from its mid-2014 peak for a sterling buyer. But with Japanese yen there was a difference of more than -38 per cent. And when it comes to US dollars, there was an effective downward price adjustment of just over -42 per cent.

Price difference for £5m+ PCL property Jun 14 to Sept 19

Looking at our latest prime central London (PCL) Index, a three-bedroom flat in Chelsea with a June 2014 price tag of £4,367,692 was worth £3,300,000 in September 2019 – a sterling fall of -24.4 per cent and a US dollar bonus of -44.7 per cent ($7,351,700 vs $4,065,600).

It’s a similar story in Kensington. There a US dollar buyer could scoop a -39.9 per cent saving on a five-bedroom house worth £8,773,412 ($14,767,407) in June 2014 and worth £7,200,000 ($8,870,400) in September this year. A Victorian terrace house in Fulham, meanwhile, offered a -12.4 per cent reduction in sterling – from £2,283,969 to £2,000,000 – but a -35.9 per cent US dollar differential from $3,844,376 to $2,464,000.

There’s evidence of a growing number of both domestic and international players waiting in the prime central London wings. And although the prevailing uncertainty will be holding some back, for those who are able to view the capital beyond the prism of an upcoming election and Brexit there are clear buying opportunities to be had.

Further information

Contact Savills Research

Listen to our podcast: London and UK house price forecasts 2020-2024