Saturday, February 24, 2024
UK

Russian homebuyers spent $254.18m on London property

London property

Benham and Reeves estimates that 286 London properties were sold to Russian buyers in 2021

The latest property market analysis by London lettings and estate agent, Benham and Reeves, has revealed that Russian residential property purchases contributed an estimated £190m ($254.18m) in market value and £13.2m ($17.66m) in stamp duty tax in 2021.

Some 82,305 residential property sales (Type A) took place across the London market last year to the tune of £55.7bn ($74.51bn) in market value, while homebuyers paid out £3.7bn ($4.95bn) in stamp duty tax.

In addition to these primary purchases, a further 13,016 transactions took place for additional purchases such as second homes and buy-to-let investments (Type B).

It’s thought that approximately 30% of this market activity was attributed to international buyers, with Russian buyers accounting for 1% of all market activity.

This means that Russian buyers accounted for an estimated 247 primary residential property purchase across the London market in 2021, with a total market value of £167m ($223.41m), paying just over £11m ($14.72m) in stamp duty tax in the process.

Benham and Reeves also estimates that Russian buyers accounted for approximately 39 Type B transactions at a market value of £22.8m ($30.50m), paying £2.2m ($2.94m) in stamp duty tax at the higher rate for this type of purchase.

In total, Benham and Reeves estimates that 286 London properties were sold to Russian buyers in 2021, sitting just short of £190m ($254.18m) in market value and netting the government almost £13.3m ($17.79m) in stamp duty tax.

Director of Benham and Reeves, Marc von Grundherr, commented: Russian activity has long contributed to the overall health of the London property market, with might of the Ruble traditionally prevalent within prime London neighbourhoods.

However, Russian buyer activity still only accounts for a very marginal proportion of market activity and so while the swift implementation of economic sanctions against Russia may have a knock on effect here in the capital, they certainly won’t spur a market decline of any sorts.

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