LON-DONE? Or a $1.40 buying opportunity?
The London housing market is clearly cooling. New homes builders have piled-in and high, with a resultant over-supply. Moreover, the FT forewarned of problems ahead last year, with the starkest of headlines :
"Asian and Russian buyers desert prime London property market."
Arguing that this group, who made up to a third of those buying in London’s wealthiest areas, were ignoring the capital "partly down to turmoil in emerging markets and partly due to a change in Stamp Duty." Add in the recent catastrophic fall in oil prices and changes in Capital Gains Tax legislation and you almost have a perfect storm for this mainstay of the London new homes buying scene.
So, who can housebuilders target to take up the slack?
Well, with the £-$ exchange rate below $1.50, this makes UK property incredibly cheap.
Factor in a benign US domestic economy and a skittish Wall Street, and doesn’t prime UK property look a hugely attractive investment option for Americans, if not The Green Cathedral of perfect waves?
Anecdotally, if a Worcestershire rural property, just scraping seven figures, was the subject of interest from Americans in ‘coffee’ and ‘music’ last year, what about $1.40 exchange-rate opportunities this year in London or The Cotswolds?
As ever, it’s all down to targeting, channel communication selection and message. And not surprisingly, we’ve got a few ideas on those subjects!