Research article

Who is buying in south west London?

New build homes in south west London are proving popular with UK buyers.

Graph 2

GRAPH 2How has the new build purchaser profile changed over time?

Source: Savills New Home Dealbook

 

South west London has historically been more popular with domestic buyers compared with more central locations. According to Savills data, 40% of UK owner occupiers purchase between £450 and £700psf and 29% purchase between £700 and £1,000psf.

Help to Buy, the Government initiative aimed to help buyers on and up the property ladder, has played a significant part in stimulating demand for new homes in mainstream price brackets.

New build in south west London has also been particularly popular among British born investors responding to the growing demand for rental homes in the capital. Among UK buyers, investors accounted for just 10% of purchasers in 2010. In 2014, this figure jumped to 55%.

British investors, who tend to work in professional or financial sectors, typically buy two bed apartments between £750psf up to £1,500psf. While the intention is to let the property, some are also planning ahead and buying for their children as a long-term investment.

International buyers have also increasingly been looking to invest in south west London schemes over the mid to long term, while educating their children in London. In contrast to UK owner occupier purchasers, over half of international buyers tend to purchase between £700 and £1,000psf; and a third purchase between £1,000 and £1,500psf. Chinese purchasers have had a presence in south west new build schemes for some time. In 2013, North African and Middle Eastern buyers accounted for a third of all purchasers due to several bulk deals in the South West region.

 

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