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There has been a sharp increase in the number of British buyers purchasing residential properties in prime central London, reversing the recessionary trend of foreign buyers dominating the market, fresh figures show.
Data from EA Shaw, which was recently acquired by CBRE, reveals that British buyers are now spending more on prime property in central London than overseas investors, with Brits accounting for 59% of all buyers recorded by the prime property specialists, and are leading purchases of properties worth over £2m.
A growing number of housebuilders are looking to capitalise on the residential property boom in the English capital by submitting plans to develop new homes in London.
Despite the recession residential property prices in London continue to buck the national trend and continue to rise due to a fundamental shortage of new homes being built.
Residential property prices in prime central London will appreciate by 6% this year in stark contrast to the rest of the UK, new research from CBRE has revealed.
Housebuilder St George has beaten off stiff competition to acquire the News International's 15.16 acre former headquarters in Wapping, East London, for in the region of £150m.
Chancellor George Osborne's announcement in today's Budget that the Government is closing a stamp duty tax loophole that allowed people to buy homes using an offshore company is unlikely to deter overseas nationals from buying property in the UK.
Jennet Siebrits, head of Residential Research, CBRE, said: "We endorse closing the offshore stamp duty loophole. Although stamp duty of 15% on homes bought through corporate envelopes appears harsh, buyers can purchase through traditional means and pay 7%.
A 44-storey residential tower will be built in Elephant & Castle, south London, as a part of the wider regeneration of the area, after the Homes and Communities Agency (HCA) took charge of the scheme, which has been on hold for three-years due to the weak economy. The HCA is now looking for a development partner to develop the tower.
Planning permission has already been awarded for the new homes, which will be developed on the Newington Butts site.
A decade of increasing home prices has left homeowners sitting on a property fortune worth almost £4 trillion, according to data provided by the Halifax.
The research shows that the average price of a residential property in the UK has increased by 84% since 2001, despite a decline in values since 2007.
Halifax said the total value of UK residential housing stock held by owner occupiers and buy-to-let investors was £3.9 trillion in 2011. That's up from £2.1 trillion in 2001, meaning an average gain of £68,500 per household.
Residential tower developments in London carry an average price premium of 36% over their local new build rivals, new research from CBRE has revealed. The study also highlighted that apartment prices increase by an average of 1.5% per floor.